SEBI notifies common ad code for market intermediaries; allows celebrity endorsement for brands
The Securities and Exchange Board of India (SEBI) has issued a common advertisement code for market intermediaries, enabling them to engage celebrities for brand or entity-level promotion while prohibiting endorsements of specific financial products or services. The Common Advertisement Code (CAC) applies to various regulated entities such as stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, and mutual funds/asset management companies.
Celebrities are allowed to endorse regulated entities at the brand or entity level, but any endorsement must not include inducement or claims directly or indirectly regarding any specific product or service. SEBI has also clarified that expenses incurred towards celebrity endorsements will not be passed on to clients or charged to mutual fund schemes.
The advertisement code requires proper explanation of ratings or rankings used in promotions, ensuring comparability and objectivity through studies or surveys covering relevant market participants.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
