The Securities Exchange Board of India (“SEBI”), vide Notification No. SEBI/LAD-NRO/GN/2025/223[1] dated January 02, 2025, issued a circular regarding the certifications required by investment advisers and their associated persons, including their partners and representatives, offering investment advice. The provisions laid down hereunder shall come into effect immediately.
Pursuant to Regulation 3(1) of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (“CAPS Regulations”), the Board may mandate, by notification, any category of associated persons (as defined in the CAPS Regulations) to obtain the requisite certification(s).
Additionally, under Regulation 7(2) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (“IA Regulations, 2013”), the Board had previously issued Notification No. LAD-NRO/GN/2013-14/13/6109 dated June 19, 2013, and Notification No. LAD-NRO/GN/2013-14/42/118 dated January 27, 2014. These notifications require the investment advisers and their associated persons, including partners and representatives providing investment advice, to obtain certifications from the National Institute of Securities Markets (“NISM”) by successfully passing the ‘NISM Series-X-A: Investment Adviser (Level 1) Certification Examination’ and ‘NISM Series-X-B: Investment Adviser (Level 2) Certification Examination’, as specified in the NISM communiqués dated May 21, 2013, and November 26, 2013, respectively.
In accordance with Regulation 3 of the CAPS Regulations, 2007 and Regulation 7(2) of the IA Regulations, 2013, the Board notified that an individual investment adviser or principal officer of a non-individual investment adviser, persons associated with investment advice and the partners of an investment adviser being a partnership firm, who are engaged in providing investment advice shall:
- obtain certifications from the NISM by passing the ‘NISM-Series-X-A: Investment Adviser (Level 1) Certification Exam’ and the ‘NISM-Series-X-B: Investment Adviser (Level 2) Certification Exam’, as outlined in the NISM communiqués dated May 21, 2013, and November 26, 2013, respectively; and
- obtain renewal certification by passing the ‘NISM-Series-X-C: Investment Adviser Certification (Renewal) Exam’ before the expiry of the validity of the existing certification, as per the NISM communiqué dated November 5, 2024.
Finally, as the provisions mentioned herein come into effect, Notification No. LAD-NRO/GN/13/2013-14/6109 dated June 19, 2013, and Notification No. LAD-NRO/GN/2013-14/42/118 dated January 27, 2014, shall stand rescinded, except for the things done or omitted to be done.
[1]https://www.sebi.gov.in/legal/gazette-notification/jan-2025/notification-under-securities-and-exchange-board-of-india-certification-of-associated-persons-in-the-securities-markets-regulations-2007-investment-adviser-certifications-examination_90529.html