The Securities and Exchange Board of India (SEBI) has announced a major relaxation in certification requirements for people working with investment advisers.
The move is expected to make compliance easier for employees involved in sales, relationship management, and other non-core activities.
The decision comes after feedback from industry participants and is aimed at improving ease of doing business in the financial sector.
Easier Exam for Sales and Support Staff
Under the revised rules, Persons Associated with Investment Advice (PAIA) who are engaged in sales and other non-core services will no longer be required to clear the more advanced NISM Series-X certification exam.
Instead, they can now qualify by passing the simpler NISM Series XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) examination.
This change is expected to reduce the compliance burden on employees who are not directly involved in providing investment advice to clients.
Who Still Needs the NISM Series-X Certification?
SEBI has clarified that the relaxation applies only to employees handling sales, customer relationships, and similar support functions.
PAIA involved in core investment advisory activities will still be required to clear the NISM Series-X certification exams, as these roles directly deal with providing investment advice and recommendations.
The regulator has made it clear that the standards for professionals offering investment advice remain unchanged.
What About Existing Certified Employees?
SEBI has also provided relief to employees who have already passed the NISM Series-X examination.
Such individuals will not be required to immediately appear for the new NISM Series XXV-B exam.
They can continue using their existing certification until it expires.
Once their current certification validity ends, they can then comply with the updated certification requirements.
New Rules Effective Immediately
The revised certification framework has come into effect immediately.
Industry experts believe the move will help investment advisory firms streamline compliance processes while ensuring that employees are certified according to the nature of their responsibilities.
The change is also expected to make hiring and training easier for firms by creating separate certification requirements for advisory and non-advisory roles.
