SEBI proposes celebrity tag for influencers with over five lakh followers

MUMBAI: The spotlight may soon come with a rulebook, as India’s market regulator redraws the line between creators and celebrities. Social media influencers with more than five lakh followers or subscribers on a single platform could soon be officially recognised as celebrities under a proposed framework released by the Securities and Exchange Board of India (SEBI), significantly widening the scope of endorsement regulations in the securities market.

In a consultation paper issued on Tuesday, SEBI proposed expanding the definition of “celebrity” beyond film stars to include influencers, sportspersons, television personalities, reality show winners and even human-like virtual avatars used for promotional activities.

The proposal forms part of SEBI’s draft Common Advertisement Code, which seeks to establish uniform standards for advertisements and endorsements related to financial products and services.

One of the most significant changes is the inclusion of digital creators. Under the draft framework, any influencer with more than five lakh followers or subscribers on a single social media platform including Youtube, Instagram, Facebook, X and other platforms would qualify as a celebrity for regulatory purposes.

SEBI has outlined eight qualifying criteria, with individuals or characters needing to satisfy just one to fall within the proposed definition.

The framework also extends to actors who have played leading roles in mainstream films, television serials, television programmes or OTT web series, reflecting the growing influence of digital entertainment alongside traditional media.

International sportspersons are another key category. The proposal covers athletes who have represented India in global competitions, including the Olympic Games, Asian Games, Commonwealth Games, as well as internationally televised sports such as cricket and kabaddi.

Television presenters and anchors could also be brought under the definition if they have hosted quiz shows, cooking programmes, news broadcasts, comedy shows, dance competitions, singing contests or award ceremonies for at least one season or 10 episodes.

In another addition, individuals appearing in the top 50 of any celebrity index published by a nationally reputed publication within the previous year would also qualify.

Reflecting the rapid evolution of digital marketing, SEBI has proposed including virtual influencers and AI-powered human-like avatars, recognising their growing use in advertising and brand endorsements.

The proposed framework comes as creators and online personalities increasingly shape consumer behaviour and, in some cases, influence financial decisions through social media platforms. By broadening the definition of celebrity, SEBI aims to bring a much wider pool of endorsers within a common regulatory framework.

If adopted, the rules could reshape the way influencers, public personalities and digital creators participate in promotions linked to investment products, placing greater responsibility on endorsements made across social media and digital platforms.