Celebrity @ 5 lakh followers: SEBI’s draft ad code may slow influencer ads
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SEBI’s new draft advertising code could turn follower count from a vanity metric into a regulatory hurdle for India’s finance-focused influencers.
Under this proposal, any creator with over 5 lakh followers on a single platform would be classified as a “celebrity” when promoting SEBI-regulated entities such as brokers, mutual funds and investment advisers. While the label sounds attractive, it brings tighter oversight, extra documentation and a ban on making product-specific claims in paid promotions.
Chartered accountant and financial educator Sakchi Jain noted that once a creator crosses the 5 lakh mark, SEBI is effectively setting boundaries on what can and cannot be said in sponsored material.
According to Jain, large audiences mean heavier compliance: creators can still endorse a brand in general terms, but cannot highlight specific products or performance. Statements like “I trust this platform” would be acceptable, but claims such as “this fund delivered great returns” or “this is the best app” would not be allowed in paid content.
Another major issue is the approval process. Ads featuring these “celebrity” creators would still need SEBI’s prior approval before release, even though the regulator plans to move most other ads to a post-publication reporting framework.
Finance creator Shivam Budhiraja said this is where the real bottleneck lies. He pointed out that delays are already frequent, with finished videos often waiting for clearance. If more influencer campaigns fall into the celebrity category, approval queues could lengthen further unless SEBI ramps up its capacity.
The draft rules may also undermine one of the creator ecosystem’s biggest advantages: speed. Financial content often rides on time-sensitive events like the Union Budget, policy changes or rate moves, where impact depends on quick publishing. Jain said adding a mandatory clearance step could slow this down, especially for creators used to pushing out sponsored posts within hours.
Technology and AI creator Arsh Goyal said the draft would force creators to function more like small compliance units rather than agile content studios. He explained that a brand deal that currently moves from initial contact to a live post in a couple of days would, under the new code, require pre-approval and documented evidence to support all claims.
These restrictions are also likely to reshape campaign formats. Goyal observed that the code clearly separates broad brand promotion from specific product endorsements. As a result, scripts may need to be reworked, and creators might have to rely on more generic brand references instead of detailed product breakdowns that usually attract higher engagement.
Jain added that the current practice of shooting a sponsored reel and publishing it the same day could change significantly if the draft norms are implemented.
Budhiraja, however, believes there is a positive side. He argued that stronger SEBI oversight could make sponsored content from large creators appear more vetted and trustworthy, potentially increasing their appeal to both brands and audiences.
Influencer marketing agency founders also see the proposal as a sign of an industry growing up, even if it means slower execution and heavier compliance in the short run. Neel Gogia, co-founder and CEO of IPLIX Media, said influencers have evolved from mere content creators to recommendation engines that influence consumer choices. In his view, the draft code is less about burdening creators and more about recognising influencer marketing as a mainstream advertising channel.
Mansi Panpalia, co-founder of influencer agency Opraah, said creators who fall under the new celebrity definition will have to treat disclosures more rigorously, back up campaign claims with evidence and collaborate more closely with agencies, legal teams and brands from the planning stage itself.
According to Shweta Kaushal, co-founder of Creatorcult, brands in tightly regulated areas like finance, insurance, healthcare and investments are likely to become more cautious in choosing influencers, as campaign timelines lengthen due to additional compliance checks.
Sanya Bajaj, co-founder of Crack’d, said the proposal raises expectations from creators by making the 5 lakh follower mark about more than just audience size. She noted that scale alone may no longer secure brand deals; credibility, transparency and adherence to regulations could become just as critical.
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