SEBI Ad Code: Are Your Stock Tips Now Verified?
SEBI now requires brokers and mutual funds to get pre-approval before using celebrities, influencers, or AI avatars in ads. This means fewer unverified 'hot stock' tips disguised as sponsored content — here's what changes for you.
One viral 'multibagger' Reel can reach 10 lakh viewers before SEBI even logs a complaint — that's more reach than most IPO roadshows.
What most retail investors get back after acting on an unverified influencer tip
Key Takeaways
Check whether any financial product ad you acted on recently carried a 'sponsored' or 'paid partnership' tag — if yes, the firm was legally required to get prior SEBI approval for that content.
File a complaint on SEBI's SCORES portal (scores.sebi.gov.in) if you bought a product based on influencer content that later proved misleading — cite the new Advertisement Code in your complaint.
Before investing on any influencer recommendation, verify the firm's SEBI registration number on sebi.gov.in — unregistered entities cannot legally run financial ads at all, approved or otherwise.
SEBI now requires brokers and mutual funds to get pre-approval before using celebrities, influencers, or AI avatars in ads. This means fewer unverified 'hot stock' tips disguised as sponsored content — here's what changes for you.
Here's what happened: SEBI's finalised Common Advertisement Code mandates that SEBI-regulated firms get prior approval before publishing ads featuring celebrities, influencers, or AI avatars.. The rule covers brokers, mutual funds, investment advisors, and portfolio managers — any SEBI-registered entity using paid promotions to reach retail investors.. For non-celebrity ads, firms must report the content to SEBI after publishing, creating an enforceable paper trail for the first time..
What you should do: Check whether any financial product ad you acted on recently carried a 'sponsored' or 'paid partnership' tag — if yes, the firm was legally required to get prior SEBI approval for that content.. File a complaint on SEBI's SCORES portal (scores.sebi.gov.in) if you bought a product based on influencer content that later proved misleading — cite the new Advertisement Code in your complaint.. Before investing on any influencer recommendation, verify the firm's SEBI registration number on sebi.gov.in — unregistered entities cannot legally run financial ads at all, approved or otherwise..
A SEBI-registered firm's registration number must appear in every financial ad. If it's missing, the ad is non-compliant regardless of approval — and that omission alone strengthens any investor complaint.
For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.
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- [1]“Lowdown: SEBI’s final ad code keeps pre-approval for influencer and AI avatar ads. What changed from the draft?” MEDIANAMA · 13 Oct 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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