Securities market regulator SEBI has allowed celebrity endorsement of mutual funds only at the industry level and not for promoting a scheme or a brand. However, fund houses have to take prior SEBI approval before featuring ads with celebrities.
Sumit Agrawal, Partner, Suvan Law Advisor & ex- Sebi Official said “Making it easier for asset management companies (AMCs) to advertise, celebrity endorsement at the industry level, promote and sell their schemes while providing flexibility to portray performance in a transparent manner is a welcome empowerment of MFs.”
Reviewing existing advertising guidelines for mutual funds in its board meeting on Saturday, SEBI said performance of other schemes managed by the fund manager shall be disclosed in a summarized manner and in internet-enabled media; Mutual Funds shall be permitted to provide an exact link to such summarized information.
