Cricketers and Bollywood stars will now advertise Mutual Fund! But doing ‘these’ things will take action from SEBI!

SEBI Rules: Markets regulator Sebi announced a major proposal on Tuesday. Under the proposal, companies such as stockbrokers, mutual fund companies, investment advisors and portfolio managers will now be able to use celebrities to promote their brand or company names. However, these celebrities may not endorse any particular plan, product or service. Action will be taken against them if they do so. What exactly are the rules?

Air India Flight : …and the Air India plane entered Pakistan directly! Passengers’ lives hang in the balance; What happened next?

What exactly is the proposal?

This proposal is part of CAC’s Common Advertising Code. It aims to harmonize advertising rules, reduce paperwork for companies and protect the interests of investors.

What are the new rules?

Under the new rules, celebrities can only endorse a company’s brand or corporate level. Some conditions have been laid down for this. Celebrities cannot recommend you to invest in a particular mutual fund or stock. At present, celebrity advertising is allowed only for mutual fund companies (AMCs) at the industry level, and that too only after obtaining prior permission from SEBI.

Approval is not required, but…

Additionally, stockbrokers, online bond platforms, investment advisors and research analysts (RAs) will not need to seek approval before publishing advertisements. But they will be required to disclose the information within 24 hours of publishing the ad.

Companies will be allowed to use ratings or rankings in their advertisements only if they have received the rating from an accredited organization such as PaRRVA (Paed Risk and Return Verification Agency). The advertisement must also mention that ratings are not the only criteria for making investment decisions.

Sebi has also relaxed norms for short advertisements like SMS, pop-ups and notifications. As this requires limited space, it will be mandatory to provide a link, where investors can click on the full warning to get complete information.

Big blow to Elon Musk! A huge blow to the treasury, the honor of being a Trillionaire was lost, now it remains only…