SEBI Advertisement Code: Celebrities Can Endorse Brands, Not Products; No Assured-Return Ads From 2027

A cricket star smiles from a billboard and says, “Invest with us.” From April 2027, an ad like that from a broker, mutual fund or investment adviser will need prior approval, and the star will not be allowed to praise a specific fund or product. SEBI has notified a Common Advertisement Code for the market intermediaries it regulates, published in the Gazette on 9 October 2026. The SEBI advertisement code sets one set of rules for ads by brokers, mutual funds, advisers and others. Here is what it bans, what it allows, and how it helps you spot a misleading investment ad.

Who the SEBI advertisement code covers

Source: SEBI (Intermediaries) (Second Amendment) Regulations, 2026, regulation 16G, notified 8 Oct 2026 and published in the Gazette on 9 Oct 2026.

“Advertisement” is defined widely: print, TV, radio, podcasts, websites, social media, streaming, and outdoor media such as billboards and in-store displays.

When it applies: on the 180th day after publication in the Gazette, which works out to early April 2027. Reports put it at 8 April 2027.

Celebrity endorsements: what is allowed

• Celebrities may endorse a regulated entity at the brand or entity level.
• The ad may name the entity’s products, but it may not include any inducement or claim, direct or indirect, about a specific product or service.
• Every ad with a celebrity needs prior approval from the supervisory body (or SEBI, where no body is specified).
• The cost of celebrity endorsements cannot be passed on to clients or charged to a mutual fund scheme.

“Celebrity” is defined broadly. It includes top-50 names in a recognised celebrity index, lead actors in films, TV or OTT shows, national-level sportspersons, TV hosts with at least one season or 10 episodes, reality-show winners and runners-up, virtual influencers, and social media influencers above the follower threshold set by the Advertising Standards Council of India. The entity’s own founders, promoters, directors and senior management are not counted as celebrities when they appear in their own ads.

What investment ads can no longer say

Regulation 16O lists what an advertisement shall not contain. The main ones:

Ads must also be “true, fair, accurate, complete and unambiguous”, should not exploit investors’ lack of experience, and should not hide behind heavy jargon. Any data, graph or chart must show its source and the date or period it covers.

Freebies and dark patterns are out

Two rules target app-based selling:

• No inducements: regulated entities must not give incentives, vouchers, coupons, tokens or subscription plans to clients to induce them to trade, open or reactivate accounts, invest in schemes, or download apps.
• No dark patterns: they must avoid the dark patterns listed in the Central Consumer Protection Authority’s 2023 guidelines, such as false urgency, hidden costs or pre-ticked boxes.

Every ad must show the entity’s name and SEBI registration number. Short formats like SMS, pop-ups and push notifications can use a link to the full details and disclaimers.

What is not counted as an ad

Educational content is not an advertisement if branding is minimal and it does not push a specific product. Research reports shared with existing clients (without performance claims), factual product lists, product demos that do not solicit, greetings, and plain sponsorships are also excluded. But any communication that promotes a product is treated as an ad, whatever it is called.

Why this matters for you

Most of these rules exist in some form today, spread across different regulations. The SEBI advertisement code puts them in one place, for every type of intermediary, and adds the celebrity rules. For an investor, the code gives a handy checklist. If an ad from a broker or fund house:

• promises a fixed or assured return,
• uses customer testimonials,
• shows a celebrity praising a particular fund, or
• offers vouchers for opening an account,

then after April 2027 it would break the rules. Until then, treat such claims with care anyway. You can verify an adviser’s registration with our guide on checking a SEBI-registered investment adviser, and see SEBI’s other investor-protection steps for brokers in our broker app messages report.

Finfluencers who are not registered with SEBI are not “regulated entities” under this code, so it does not directly govern their own posts. It does govern paid ads that registered entities run through them.

Also notified: new PMS rules

Alongside the ad code, SEBI notified the Portfolio Managers Regulations, 2026, from 1 April 2027, Moneycontrol reported, with a ₹5 crore net-worth requirement for regular portfolio managers. PMS changes for small investors were covered in our PRIM report.

Questions readers ask most:

FAQs

When does SEBI’s advertisement code apply?

From the 180th day after Gazette publication on 9 October 2026, which works out to early April 2027.

Can a celebrity still appear in a mutual fund ad?

Yes, at brand level, with prior approval from AMFI, and without claims about a specific scheme. The cost cannot be charged to the scheme.

Are assured-return ads allowed?

No. Ads cannot promise assured, risk-free, indicative or fixed returns, except as SEBI allows for online bond platforms.

Does it cover banks selling mutual funds?

The code applies to SEBI-regulated entities listed in the regulation. Mutual funds and AMCs are covered; how distributors are treated may be clarified by SEBI separately.

Takeaway: The SEBI advertisement code, effective around April 2027, bans assured-return claims, testimonials and freebies, and lets celebrities endorse only brands, with prior approval. Use it today as a checklist for any investment ad you see.