Sebi notifies common ad code for regulated entities
In short
Sebi has put out a common ad code for financial firms. It lets celebrities endorse a brand, but not a specific financial product or service.
The rule affects brokers, advisers, mutual funds and other regulated entities. It may change how they advertise, but the reporting does not say how many firms will be affected or when they must fully comply.
What the reporting says
Sebi notified a common advertisement code that allows celebrities to promote regulated entities at the brand level, according to publisher summaries of the move. The code bars endorsements of specific financial products or services and applies to brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers and mutual funds or AMCs. The immediate effect is tighter rules on marketing, while how firms will adjust is not stated.
Why it matters
Sebi notified a common advertisement code covering several regulated entities, including stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers and mutual funds or asset management companies. The code permits celebrity brand endorsements but blocks endorsements of specific financial products or services. The move mainly affects marketing practices and compliance, but the reporting does not state implementation details or penalties.