Sebi Proposes 5 Lakh Followers Rule To Classify Social Media Influencers As Celebrities In New Ad Code

The Securities and Exchange Board of India (Sebi) has proposed a major overhaul of its advertising code that could redefine who qualifies as a “celebrity” for endorsement purposes.

In a consultation paper issued on Tuesday, Sebi suggested that individuals with more than 5 lakh followers on social media platforms may also be classified as celebrities, significantly expanding the scope of existing rules.

The regulator has also permitted celebrity endorsements at the brand level under the proposed framework.

The objective is to modernise advertising regulations in line with changing digital consumption patterns and the growing influence of non-traditional public figures.

According to the draft proposal, a person or digital character will be considered a celebrity if they meet any one of eight defined criteria.

One category includes individuals who feature in the top 50 of any recognised celebrity index published by a reputed national publication, provided the list is current or not older than one year.

Actors who have played leading or significant roles in mainstream films, television serials, web series, or OTT productions are also included.

Importantly, Sebi has brought social media influencers into the regulatory framework. Any influencer with more than 5 lakh followers or subscribers on a single account across platforms such as YouTube, Instagram, Facebook, X, and others would be treated as a celebrity under the new definition.

Sportspersons are also covered, particularly those who have represented their country at international events, including global competitions like the Olympics, Asian Games, Commonwealth Games, and other televised sports tournaments such as cricket and kabaddi.

Television personalities who have anchored or hosted programmes—including news shows, reality competitions, comedy shows, and award functions—for at least one season or a minimum of ten episodes are also included.

The draft further recognises winners and runners-up of reality television or OTT competitions, especially those involving elimination formats such as quarter-finals and finals.

In a notable addition, Sebi has proposed including virtual influencers or AI-generated characters that display human-like traits and have the ability to influence audiences.

The regulator has also retained discretionary powers, allowing Sebi or a designated authority to classify any individual or entity as a celebrity if they are deemed capable of influencing advertisement audiences.

Overall, the proposal aims to align advertising regulations with the rapidly evolving digital ecosystem and broaden oversight to include influencers beyond traditional film and sports personalities.