SEBI's finfluencer rules to push brands to prioritise credibility over reach

The Securities and Exchange Board of India's (SEBI) proposed Common Advertisement Code (CAC) marks one of the strongest attempts yet to bring India's rapidly growing creator economy under the same compliance framework as traditional financial advertising. While the proposal classifies finfluencers and even AI-generated creators as celebrities for advertising purposes, industry executives argue that the bigger shift is not about restricting influencer marketing but professionalising it.

The proposed framework standardises advertising norms across all SEBI-regulated entities, including brokers, mutual funds, investment advisers and research analysts. Under the code, creators can appear in corporate or brand campaigns but cannot endorse specific investment products or services. Advertisements will also no longer require prior approval; instead, they must be reported to SEBI-recognised supervisory bodies within 24 hours of publication. Short-format advertisements such as SMSes and web pop-ups will be allowed to carry disclaimer hyperlinks instead of displaying lengthy disclosures directly.

For marketers, the proposal reflects a structural change in how financial influence is viewed.Explaining the growing importance of the creator ecosystem in financial marketing, Gaurav Ramdev, Head of Marketing, Visa, India and South Asia, told exchange4media, "The creator ecosystem brings contextual relevance and relatability, translating the brand into formats and voices that consumers trust and interact with daily."

As consumer attention becomes increasingly fragmented, Visa expects creator-led storytelling to work alongside digital-first engagement and experiential marketing, rather than replace traditional brand-building efforts, he mentioned.

According to Abhishek Shetty, Chief Marketing Officer, Swiggy Instamart, "The creator economy has reached a stage where influence has become comparable to institutional trust. When someone can shape financial decisions for millions of people, the standards of accountability should naturally evolve as well. I actually see regulations like these as a sign that influencer marketing is maturing, not being restricted."

Shetty believes the regulation changes how brands evaluate creator partnerships. "For brands, this shifts the conversation from buying reach to borrowing credibility. The creators who will thrive are not necessarily the ones with the largest following, but the ones whose influence is built on transparency and trust."

The proposal also reflects a broader transition in the creator economy itself. As creators begin influencing investment decisions alongside traditional financial institutions, brands believe the ecosystem is moving towards greater formalisation.

Said Shantiswarup Panda, Chief Marketing Officer, Indriya, "Creators sit somewhere between a celebrity and a person you know personally. They are more credible than celebrities because audiences follow them for their lifestyle, values and authenticity.”

However, the industry does not expect an immediate disruption in marketing spends.

According to Ayush Shukla, Chief Executive Officer, Finnet Media, "Finfluencers and AI creators currently account for less than 5 per cent of overall influencer marketing budgets in the financial sector. The regulation is likely to affect only a small set of established financial brands and large creators who fall within SEBI's proposed celebrity classification. For most brands, creator partnerships will continue to be driven by credibility, compliance and audience trust rather than follower thresholds alone."

That suggests the proposal may alter execution more than investment. Brands are expected to tighten due diligence, creator vetting and campaign approvals rather than significantly reduce creator-led marketing budgets.

At a time when brands across categories are increasingly shifting marketing budgets towards creators and performance-led campaigns, Visa is taking a more balanced approach. Rather than viewing celebrities and creators as competing investments, the global payments company believes both play distinct roles in building brand equity. Its recent partnership with Shah Rukh Khan reflects a long-term trust-building strategy, while creators continue to drive relatability and everyday consumer engagement.

Gaurav Ramdev said the company's association with Shah Rukh Khan was rooted in strategic brand fit rather than celebrity appeal alone. "In a high-trust category like payments, credibility, reliability, safety and security are paramount. Shah Rukh Khan personifies what Visa has always stood for—trust, global appeal and enduring relevance," he said. Ramdev added that while celebrity partnerships build cultural resonance at scale, Visa's broader marketing strategy remains integrated, with creators, digital platforms, television and experiential marketing each playing a distinct role in connecting with consumers.

Visa is also not moving away from creator-led marketing. Ramdev said creators have become an important part of the brand's media mix because they bring contextual relevance and authenticity to consumer conversations. While celebrity campaigns help establish trust and scale, creators translate the brand into formats and voices that audiences interact with daily.

While welcoming stronger safeguards, Panda cautioned that greater institutionalisation may gradually make creators resemble traditional celebrities, potentially reducing the relatability that currently drives their influence.

He added that Indriya already follows structured creator contracts, disclosure norms and content usage rights irrespective of follower count, making the regulatory transition relatively seamless.

For agencies specialising in creator partnerships, the regulations are seen as a long-term trust-building exercise rather than an operational hurdle.

"As an agency founder working closely with finance creators and fintech brands, I don't see SEBI's proposed advertisement code as bad news for creators. I see it as a positive step for the entire creator economy," said Deepak Bhati, Co-Founder, Digiwhistle.

Bhati said misleading return claims, undisclosed paid promotions and AI-generated financial experts have blurred the line between education and advertising in recent years. According to him, a common advertising framework creates a level playing field by protecting investors while rewarding creators who consistently disclose partnerships and produce responsible financial content.

The inclusion of AI-generated creators has also drawn attention as synthetic influencers become easier to build and deploy.

"Finance is a very delicate topic. People get influenced very easily, and influencer marketing is all about that. Keeping guardrails in place will only protect investors and improve overall industry hygiene," said Gautam Madhavan, Founder and Chief Executive Officer, Xley AI. He added that while AI influencers will continue to grow, financial content created through AI should ideally be restricted to certified professionals to preserve authenticity.

Interestingly, creators focused on financial education rather than investment recommendations believe the impact will remain limited.

"This affects only those who create content around specific stocks and mutual funds. Most of the large creators were already under existing rules and displayed their registration numbers. It doesn't affect me because I teach principles of personal finance rather than recommending specific investments," said Ankur Warikoo, finfluencer.

The emerging consensus across marketers is that SEBI's proposal is less about reducing the role of creators and more about redefining the standards under which influence operates. As financial content increasingly shapes investment behaviour, compliance may become as important as creativity.

For brands, that could mean moving beyond follower counts towards measurable credibility, regulatory readiness and long-term audience trust. In an industry where influence increasingly carries fiduciary consequences, transparency may soon become the strongest marketing asset.