SEBI's Proposed Definition of "Celebrity": A Quiet Step Towards the AI Era

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 Published: 1 July 2026

By Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru
Advocating Digital Transactions Day (April 11)

Introduction

On 23 June 2026, SEBI released a Consultation Paper on the Common Advertisement Code (CAC) for Specified SEBI Regulated Entities, inviting public comments until 14 July 2026. Among its key proposals are a unified advertisement framework, post-issuance reporting in place of mandatory prior approvals, and a common regulatory architecture across multiple SEBI-regulated entities.

While these proposals have understandably attracted attention, another proposal—tucked away in Section 7 (Proposed Common Advertisement Code)—deserves equal attention.

It is the proposed definition of "Celebrity."

This proposed definition opens up lots of possibilities and is very forward looking.


 Beyond Film Stars and Sports Icons

Clause 7(2) proposes a broad definition of "Celebrity."

It includes well-recognised categories such as:

  • Persons featured in recognised celebrity rankings.
  • Lead actors in films, television and OTT platforms.
  • Social media influencers.
  • National and international sportspersons.
  • Television anchors and hosts.
  • Winners and runners-up of prominent competitive programmes.
  • Any other personality considered capable of influencing viewers by the Board or the supervisory body.

At first glance, this appears to be a comprehensive definition suited to today's media landscape.

Then comes Clause 7(2)(vii).

The Most Interesting Clause

SEBI proposes that the definition of a celebrity should also include:

"...a virtual character (fictional computer 'people' or avatars who have the realistic characteristics, features and personalities of humans) that bears influence on their audience/followers."

This may be one of the most forward-looking provisions in the entire consultation paper.

Traditionally, the word "celebrity" referred to a human being.

The proposed definition recognises that influence may also come from virtual personalities that exist only in digital form.

And, this opens up immense opportunities.

Why This Matters

Artificial intelligence is rapidly changing the way people consume information.

Virtual influencers, AI-generated presenters, digital brand ambassadors and human-like avatars are increasingly becoming part of online communication.

Whether such virtual personalities eventually participate in financial advertising remains to be seen.

However, by explicitly including them within the proposed definition of "Celebrity," SEBI appears to be acknowledging that the ability to influence investors is no longer limited to human personalities.

Rather than waiting for technology to reshape the advertising ecosystem, the consultation paper appears to prepare the regulatory framework in advance.

A Thought for the Future

The proposal raises an interesting question.

Tomorrow, if an AI-generated virtual personality becomes one of the most recognised financial influencers in the country, should it be treated differently from a film star or a sports icon while promoting a regulated financial entity?

SEBI's proposed definition suggests that the regulator is already thinking about that possibility.

Whether the final regulations retain this provision will be interesting to watch.

Conclusion

The Common Advertisement Code is expected to simplify and harmonise advertising requirements across several SEBI-regulated entities.

Yet, for me, the most thought-provoking proposal is not about advertisements themselves.

It is about how regulation is beginning to redefine **who—or perhaps what—can influence public opinion in the digital age.

Sometimes, the most significant regulatory changes are found not in the headlines, but in a single definition. Clause 7(2)(vii) may well be one such example.

Disclaimer

This article presents the author's personal observations on SEBI's Consultation Paper on the Common Advertisement Code for Specified SEBI Regulated Entities. The proposals discussed are currently under public consultation and do not represent SEBI's final regulatory position.

The Joy of Digital Transactions

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru
Digital Transactions Day (April 11)

 

Author’s Blogs

https://prashantrandomthoughts.blogspot.com
https://prashantnepayments.blogspot.com
https://innovationinbanking.blogspot.com

 

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