The Securities and Exchange Board of India (“SEBI”) has issued a notification dated January 2, 2025, introducing revised certification requirements under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007. This notification ensures continuous compliance with certification standards for investment advisers and associated persons.
Key Highlights of the Notification
Certification for Investment Advisers
· Individual Investment Advisers and Principal Officers of non-individual investment advisers, along with their associated persons and partners involved in providing investment advice, must obtain certifications from the National Institute of Securities Markets (NISM).
· Required Certifications:
NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination
NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination
Renewal Certification
· To ensure continuous compliance, individuals must renew their certifications before the expiry of the existing validity.
· Renewal requires passing the NISM-Series-X-C: Investment Adviser Certification (Renewal) Examination.
Implementation and Rescission
· The notification comes into effect from the date of publication in the Official Gazette (January 2, 2025).
· Previous notifications issued in June 2013 and January 2014 regarding certification requirements stand rescinded, except for actions already completed under them.
Conclusion
This update aims to maintain high professional standards among investment advisers and their associated persons by enforcing updated certification and renewal requirements. These measures align with SEBI’s commitment to safeguarding investor interests and enhancing the quality of advisory services in the securities markets.
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