A large mutual fund asset management company holding a portfolio of ₹ 2,000 crore. It has launched a new Multi Cap Fund and wishes to engage bollywood celebrity to popularize this scheme. Is it permissible under SEBI reg

The Advertisement Code as specified under Sixth Schedule of the SEBI (Mutual Funds) Regulations, 1996, states that celebrities shall not form part of the advertisement. In view of above, the engagement of celebrity for a particular scheme like Multi Cap Fund is not permissible. In case the asset management company desires to disseminate the awareness in general about the mutual fund industry, then it is allowed subject the conditions explained hereunder: SEBI vide its Circular No. CIR/IMD/DF/23/2017 dated 15/03/2017 reviewed advertisement guidelines for mutual funds. In this respect, it has been decided by SEBI to permit celebrity endorsements at industry level, for the purpose of increasing awareness of Mutual Funds as a financial product category. However, such celebrity endorsements of Mutual Funds at industry level, shall be subject to the following conditions: Celebrity endorsement shall be allowed only at industry level, for the purpose of increasing awareness of Mutual Funds as a financial product category. Such celebrity endorsements should not promote a scheme of a particular Mutual Fund or be used as a branding exercise of a Mutual Fund house / AMC. Expenses towards such celebrity endorsements for increasing awareness of Mutual Funds shall be limited to the amounts that are aggregated by Mutual Funds at industry level for the purpose of conducting investor education and awareness initiatives, in terms of clause F of SEBI circular dated September 13, 2012. Prior approval of SEBI shall be required for issuance of any endorsement of Mutual Funds as a financial product, which features a celebrity for the purpose of increasing awareness of Mutual Funds.