India's capital markets regulator is looking to redefine who qualifies as a celebrity in financial advertising. Under a proposed Common Advertisement Code (CAC), the Securities and Exchange Board of India (SEBI) has suggested that social media influencers with more than 5 lakh followers on a single platform should be treated as celebrities, bringing them under the same advertising framework that applies to film stars and other public personalities.

The proposal, released through a consultation paper on June 23, is part of a broader effort to overhaul advertising norms for stock brokers, mutual funds, investment advisers, research analysts, portfolio managers and other regulated entities. The regulator has invited public comments until July 14.

Who will be considered a celebrity?

The proposed definition goes well beyond traditional celebrities.

Besides influencers with over 5 lakh followers, SEBI has proposed covering sportspersons who have represented India at the international level. This includes athletes who have competed in events such as the Olympic Games, Asian Games, Commonwealth Games and other internationally recognised competitions, including widely televised sports like cricket and kabaddi.

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Television personalities also fall within the proposed definition. Individuals who have served as hosts or anchors of television programmes—including quiz shows, cooking programmes, news shows, comedy programmes, dance competitions, singing contests and award functions—for at least one season or a minimum of 10 episodes would qualify as celebrities.

Reality television contestants are another new category. Winners and runners-up of television or OTT-based competition shows involving multiple elimination rounds, such as quarter-finals, semi-finals and finals, would also be treated as celebrities under the draft framework.

AI avatars also under SEBI's radar

One of the most notable features of the proposal is the inclusion of AI-generated personalities.

The draft explicitly recognises realistic virtual characters or computer-generated avatars that possess human-like characteristics and have the ability to influence audiences or followers. If used in financial advertising, these digital personalities would be subject to the same compliance requirements as human celebrities.

SEBI has also proposed giving itself, or a recognised supervisory body, discretionary powers to classify any individual or virtual character as a celebrity if it believes the person or entity is capable of influencing viewers of an advertisement.

The move reflects the regulator's attempt to keep pace with evolving marketing trends, where digital creators and AI-generated influencers are increasingly competing with traditional celebrities for audience attention.

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What changes for financial firms?

If implemented, celebrities—including influencers and AI avatars—would be allowed to endorse only the regulated entity or its brand. They would not be permitted to make claims or recommendations about specific financial products or services.

Advertisements featuring celebrities would also continue to require prior approval, even though SEBI has proposed removing pre-publication approval requirements for most other advertisements. Instead, regulated entities would upload advertisements or advertisement links to a centralised portal within 24 hours of publication for post-publication supervision.

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The draft code also proposes banning guaranteed-return claims, testimonials, misleading comparisons and incentives such as vouchers, coupons or rewards linked to account opening, account reactivation or increased trading activity. It further prohibits the use of "dark patterns" such as false urgency, forced actions and subscription traps.

The proposed framework marks one of SEBI's most significant attempts yet to regulate creator-led financial advertising. As investment platforms increasingly rely on influencers and digital personalities to connect with younger audiences, the regulator's expanded definition of "celebrity" could fundamentally reshape how financial brands market themselves in the digital age.

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Published on: Jun 25, 2026 3:37 PM IST