Mutual Fund Companies May Soon Use Celebrities Under SEBI’s New Ad Code

SEBI’s June 23, 2026 proposal may allow mutual fund companies to use celebrities for brand ads, not scheme or return promotion.

Key Highlights

• SEBI proposed a Common Advertisement Code on June 23, 2026, through PR No. 36/2026, covering mutual funds, brokers, advisers and PMS entities.
   
• Earlier, SEBI’s March 15, 2017 circular allowed celebrities only for mutual fund industry awareness, mainly through AMFI-level campaigns.

The Securities and Exchange Board of India has proposed a Common Advertisement Code for specified regulated entities, according to SEBI. The proposal may allow mutual fund companies to use celebrities only for entity-level or brand-level promotion.

The short-term impact could be louder AMC advertising across TV, digital and social media. The long-term risk is investor influence. A famous actor or cricketer cannot become a reason to buy a fund. The scheme still has market risk, costs and suitability checks.

What Has SEBI Proposed In The New Ad Code?

SEBI’s proposal is not limited to mutual funds. It covers many investor-facing market entities.

This means an AMC may promote its name with a celebrity, but the celebrity cannot recommend a specific equity fund, debt fund, SIP plan, return claim or investment product.

How Will It Affect Indian Mutual Fund Investors?

For Indian investors, this may increase financial brand recall. A person who already sees bank FD, gold and insurance ads may start noticing mutual fund companies more often, especially on social media.

LoansJagat’s June 25, 2025 SIP guide says SIP allows investors to put a fixed amount regularly into mutual funds. LoansJagat’s take is direct: celebrity ads may improve awareness, but SIP decisions should still come from goals, risk appetite and fund facts.

The safer route is to treat celebrity ads as brand communication. The investment decision should come after reading the scheme document, risk label and cost details.

What Do Experts And Stakeholders Say?

Moneycontrol reported on June 23, 2026, that SEBI wants one ad code for market participants and may shift most ads to post-issuance reporting. Fortune India said the proposal covers brokers, mutual funds and PMS entities.

Moneycontrol also reported on June 24, 2026, that influencers, anchors and athletes may fall under the celebrity definition, with 5 lakh followers becoming a key point of debate.

Earlier Developments

Only celebrity participation in industry experience sessions (i.e. those occurring at the industry level) was permitted after the celebrity participation in Mutual Fund advertisement was relaxed by SEBI, “Review of Advertisement Guidelines for Mutual Funds,” dated March 15, 2017, as reported by Economic Times Brand Equity on March 16, 2017.

As per the Times of India on June 24, 2026, individual mutual fund companies could get brand celebrity endorsement permission after the proposal is approved by SEBI.

Conclusion

The proposal is open for public feedback until July 14,2026. SEBI has not approved the rule yet. Although celebrity endorsements may enhance the visibility of a Mutual Fund brand among the public, they must focus on the facts rather then the celebrity endorsements. 

FAQs

Can Celebrities Promote A Specific Mutual Fund Scheme?

No. SEBI’s proposal does not allow celebrity promotion of specific investment products.

When Did SEBI Release The New Ad Code Proposal?

SEBI released the Common Advertisement Code proposal on June 23, 2026.

What Was The Earlier Rule On Celebrity Ads?

SEBI’s March 15, 2017 circular allowed celebrities only for industry-level mutual fund awareness.

Why Do Finance Advertisements In India Depend So Much On Cricketers?

Finance brands use cricketers because they bring quick trust, wide recall and family appeal. Cricket reaches small towns, big cities and every age group in India.

Why Is There Suddenly So Much Advertising For Mutual Fund Investing In India?

Mutual fund ads have grown because SIP investing, finance apps and first-time investors are rising. Fund houses now compete harder for early investor attention.