The growing role of influencers on social media
In the present times, the influence of influencers active on social media is no longer limited to just entertainment or lifestyle. Millions of people are also getting information related to investment, savings and financial decisions through these platforms. In this context, the Securities and Exchange Board of India (SEBI) has introduced an important proposal, which may change the role and responsibilities of social medium influencers in the future.
SEBI’s draft advertising code of conduct
SEBI has issued a draft uniform advertising code of conduct for advertisements of financial products and services. According to this proposal, influencers who have more than five lakh followers or members can be categorized as celebrities. This limit will apply to any one social media platform.
Expanding the definition of celebrity
This offer is not limited to film stars only. SEBI has suggested expanding the definition of celebrity, so that all major influencers in the digital age can be brought under the same regulatory ambit. If this rule is implemented, influencers involved in promoting investment and financial products may have to take on the same responsibilities as traditional celebrities.
Celebrity Identity Criteria
SEBI has proposed eight different criteria for celebrity identification. A person or virtual character fulfilling any one of these conditions can fall into this category. According to the proposal, actors playing lead roles in major films, serials, television programs or web series will also be included in this scope.
Recognition of players at international level
Additionally, players representing India at the international level will also be considered celebrities. This includes players participating in Olympic Games, Asian Games, Commonwealth Games and internationally telecast sports like Cricket and Kabaddi.
Involvement of news presenters and program operators
News presenters and program operators have also been included in SEBI’s draft. If a person has conducted a quiz, news, dance competition, singing competition, comedy programme, cooking program or awards ceremony for at least one season or ten episodes, he can also fall in this category.
position in prominence list
Another important proposal is that a person included in the top 50 positions in any popularity list released by national level reputed publications can also be considered a celebrity. This could pave the way for bringing influential people from both traditional and digital sectors within the regulatory ambit.
Involvement of virtual influencers
SEBI has also proposed to include AI-based human-like virtual influencers in this definition. In recent years many companies have been using such digital faces to promote products and services.
Promote investor protection
Experts believe that this step can strengthen investor protection amid increasing digital participation in investment advice and promotion. If this proposal is implemented, it will ensure greater oversight and accountability over financial endorsements made by social media influencers, artists, sportspersons and other public figures. This is expected to provide more transparent and responsible information to investors.
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