SEBI Eases Certification Rules For Sales, Non-Core Staff At Investment Advisory Firms

The Securities and Exchange Board of India (SEBI) on Wednesday announced changes to the certification framework applicable to employees working with registered investment advisers.

The regulator has created a separate category for personnel who interact with clients but are not directly involved in providing investment advice.

According to SEBI, the decision follows feedback received from market participants and forms part of its broader ease-of-doing-business initiatives.

Which Employees Will Benefit From The New Certification Framework?

The revised framework applies to employees engaged in sales and other non-core activities.

This category includes sales personnel, relationship managers and other staff members who communicate with clients but are not involved in investment advisory functions.

Such employees will now be required to clear the NISM Series-XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination.

What Changes Have Been Made To Existing Qualification Requirements?

Under the earlier framework, Persons Associated with Investment Advice (PAIA) were required to obtain investment adviser certifications prescribed by SEBI.

Under rules introduced in January 2025, Persons Associated with Investment Advice (PAIA) were required to clear both the NISM Series-X-A and Series-X-B certification examinations.

SEBI has now separated employees who provide investment advice from those who only handle sales and other support functions.

Staff involved in investment advisory activities will continue to remain subject to the existing qualification requirements. They must still clear both the Series-X-A and Series-X-B examinations prescribed under SEBI regulations.

Certification Requirements Comparison

What Transition Relief Has SEBI Provided?

SEBI has also introduced a transition mechanism for employees covered under the new category.

Personnel who already hold the higher-level NISM Series-X-A and Series-X-B certifications as of the date of the circular will not be required to immediately obtain the new Series-XXV-B certification. Instead, they can continue with their existing certifications until validity expires.

The new Series-XXV-B certification will need to be obtained before the expiry of those existing certifications.

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According to SEBI, the changes are intended to align qualification requirements more closely with employee responsibilities while simplifying compliance obligations for registered investment advisers.

The regulator said the revised framework balances ease of doing business with the need to maintain qualification standards for personnel directly involved in investment advisory services.

Source:

Moneycontrol