Social media influencers may soon face a different set of expectations when promoting financial brands. The Securities and Exchange Board of India (SEBI) has introduced a Common Advertisement Code that expands the definition of a celebrity and sets conditions for endorsements involving regulated financial entities. The framework covers stockbrokers, mutual funds, investment advisers, research analysts, portfolio managers and other specified entities. It could affect how financial brands work with influencers, actors, sportspersons and digital personalities in advertising campaigns. The rules were notified in October 2026 and will take effect on the 180th day after publication in the Official Gazette.
Why Is SEBI Expanding the Definition of a Celebrity?
SEBI’s June 2026 consultation paper proposed a common advertising framework to replace fragmented rules that applied to different categories of regulated entities.
The draft sought to broaden the definition of a celebrity beyond film stars and television personalities. It included social media influencers, sportspersons, television hosts, reality show winners and human-like virtual avatars.
The proposal identified influencers with more than five lakh followers or subscribers on a single social media platform as celebrities. This was a widely reported feature of the draft.
The final regulations refer to the applicable follower threshold specified under ASCI guidelines. They also retain other qualifying categories, including lead actors, internationally represented sportspersons, television personalities and virtual influencers.
What Does the New Code Mean for Influencers?
The rules concern advertisements issued by or on behalf of specified SEBI-regulated entities. They do not automatically turn every influencer into a SEBI-regulated financial professional.
Instead, the celebrity classification matters when a regulated financial business uses an eligible personality in its advertising.
Under the new code, celebrity endorsements are permitted for brand-level or entity-level promotion, subject to prescribed conditions and prior approval from the relevant supervisory body. Such advertisements cannot make direct or indirect claims or offer inducements relating to a specific financial product or service.
For example, a celebrity may feature in an advertisement that promotes a financial company’s brand. However, the endorsement cannot be used to make a specific investment product appear guaranteed, risk-free or certain to deliver a particular outcome.
This distinction is important for financial influencers whose audiences may rely on their recommendations when making investment decisions.
Which Other Personalities Could Qualify as Celebrities?
The framework extends beyond social media follower counts. The categories include:
- Film and television actors: People who have played lead roles in mainstream or popular films, television serials, shows or OTT web series.
- Sportspersons: Athletes who have represented their country in international competitions or been part of a national team.
- Television hosts and anchors: Personalities who have hosted or anchored qualifying programmes for at least one season or ten episodes.
- Reality and competition personalities: Individuals covered by the prescribed celebrity-index criteria or other applicable qualifying provisions.
- Virtual influencers: Human-like digital avatars that influence their audiences.
The final regulations also include people featured in the top 50 rankings of a publicly available celebrity index published by a nationally reputed publication, subject to the specified conditions.
Will Every Influencer With Five Lakh Followers Face SEBI Rules?
Not in every aspect of their work.
The code applies to advertising issued by or on behalf of specified regulated entities for products and services within SEBI’s jurisdiction. An influencer’s follower count alone does not make them a stockbroker, investment adviser or research analyst.
However, a creator classified as a celebrity could face restrictions when appearing in advertisements for covered financial businesses. Brands will also need to consider the approval requirements and conditions before launching celebrity-led campaigns.
The rules therefore matter most in the context of financial advertising, rather than every commercial collaboration an influencer undertakes.
What Changes for Financial Brands?
The Common Advertisement Code introduces a uniform framework for specified regulated entities. Most advertisements will move to a post-issuance reporting process, while advertisements featuring celebrities require prior approval.
Regulated entities must also ensure that their advertisements are fair, accurate and not misleading. The code sets conditions for promotional claims and celebrity endorsements, with the aim of improving consistency across the financial sector.
For brands, this means celebrity selection and campaign planning may require additional compliance checks. For creators, it makes the distinction between promoting a financial brand and endorsing a particular investment product especially important.
When Will the Rules Take Effect?
SEBI approved the Common Advertisement Code at its board meeting on 24 September 2026. The amendment regulations were notified in October and are scheduled to come into force on the 180th day after publication in the Official Gazette.
Until then, the new framework should be described as notified but not yet in force. The central takeaway is that SEBI is formalising how specified financial businesses use celebrities and influencers in advertising, with additional safeguards for promotions that could affect investor decisions.