On February 14, 2025, the Securities Exchange Board of India (“SEBI”), vide Notification No. SEBI/LAD-NRO/GN/2025/231[1] (“Notification”), issued new certification requirements under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 and the Securities and Exchange Board of India (Research Analysts) Regulations, 2014 (“RA Regulations, 2014”). The Notification shall come into effect from March 01, 2025, while rescinding Notification No. SEBI/LAD-NRO/GN/2014-15/26/540, dated March 24, 2015, pertaining to the RA certifications.
This Notification mandates fresh certification requirements for individuals and entities engaged in research services in the securities market. The key highlights of the Notification include:
- Individuals registered as Research Analysts (“RAs”) under the RA Regulations, principal officers of non-individual research analysts, employed research analysts, and persons associated with research services shall obtain certification from the National Institute of Securities Markets (“NISM”).
- The current required certification as per the NISM communiqué dated February 16, 2015, is the ‘NISM-Series-XV: Research Analyst Certification Examination’.
- However, in accordance with this Notification, the individuals shall be required to renew their certification before its expiry by passing the ‘NISM-Series-XV-B: Research Analyst Certification (Renewal) Examination’, as specified in the NISM communiqué dated January 6, 2025. This is for the purpose of ensuring continuity of compliance with the certification requirements, before expiry of the validity of the existing certifications.
[1] https://www.sebi.gov.in/legal/gazette-notification/feb-2025/notification-under-securities-and-exchange-board-of-india-certification-of-associated-persons-in-the-securities-markets-regulations-2007-research-analyst-ra-certification-examination_92002.html