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Sebi Notifies Common Ad Code, Allows Celebrity Endorsements for Brands
Sebi has introduced a Common Advertisement Code allowing celebrity endorsements for regulated entities, while prohibiting endorsements of specific financial products. Advertisements must include disclaimers and prior approval.
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What Happened?
Sebi has introduced a Common Advertisement Code allowing celebrity endorsements for regulated entities, while prohibiting endorsements of specific financial products. Advertisements must include disclaimers and prior approval.
AI Quick Summary
Sebi's new ad code allows celebrity endorsements for brands while prohibiting specific product promotions.
Key points
- Sebi has notified a Common Advertisement Code (CAC) for market intermediaries.
- Celebrity endorsements are allowed at the brand or entity level but not for specific products.
- Advertisements featuring celebrities require prior approval from Sebi.
- Expenses for celebrity endorsements cannot be charged to clients.
- Ratings used in advertisements must come from a verified agency and be properly explained.
Key insights
- The regulation could lead to more responsible advertising practices in the financial sector.
- Celebrity endorsements may attract more attention to regulated entities but must comply with strict guidelines.
- The requirement for prior approval may slow down the advertising process for brands.
Why it matters
This new code could enhance transparency in advertising for financial services.
Source
Business Standard
