SEBI proposes ad rules treating accounts with 5 lakh-plus followers as celebrities

The proposal in India could impose tighter endorsement requirements on social media accounts promoting financial products if they cross the 5 lakh follower threshold.

Summary

SEBI (India’s securities regulator) has proposed advertising rules that would classify anyone with more than 5 lakh followers as a celebrity. The change could bring stricter standards for endorsements of financial products, extending tighter promotion rules to large social media accounts as regulators scrutinize how investment products are marketed online.

Terms & Concepts
  • SEBI: India’s securities regulator overseeing capital markets.