India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has introduced a key regulatory update by easing the SEBI certification requirement for certain professionals working with registered research analysts.
The regulator announced that the revised rules will apply specifically to Persons Associated with Research Services (PARS) who are involved in sales roles or client-facing positions but are not directly engaged in core research activities.
The move is aimed at simplifying compliance procedures for financial institutions and brokerage firms while ensuring that regulatory oversight remains intact.
New Framework For Research Analyst Sales Staff
Under the revised regulatory framework, employees involved in sales functions, relationship management, or other non-core services linked to research analysts will now be required to pass a lighter certification examination.
These professionals must clear the NISM Series-XXV-A certification, titled:
“Persons Associated with Research Services (Sales and Other Non-Core Services)”
The examination will be conducted by the National Institute of Securities Markets (NISM).
This adjustment to the SEBI certification requirement is intended to ensure that professionals interacting with clients possess sufficient market knowledge without imposing the full research analyst certification burden.
Existing Certification Rules Continue For Research Analysts
SEBI clarified that employees who are directly involved in research analysis, investment recommendations, or financial research reports will continue to follow the existing certification rules.
Such professionals must still pass the NISM Series-XV Research Analyst Certification Examination, which remains mandatory under the SEBI Research Analysts Regulations, 2014.
The regulator emphasized that the relaxation of the SEBI certification requirement applies only to sales staff and client support roles that assist research analysts.
Relief For Existing Certificate Holders
The regulator also provided clarity for professionals who have already obtained the NISM Series-XV certification.
According to SEBI, individuals who currently hold the certification will not be required to immediately take the new Series-XXV-A examination.
Instead, they can continue using their existing certification until it expires. Once the validity period ends, they will then need to obtain the updated certification under the revised SEBI certification requirement framework.
Immediate Implementation Of New SEBI Rules
SEBI confirmed that the new regulatory framework comes into effect immediately.
The Research Analyst Administration and Supervisory Body (RAASB) has been instructed to update its operational guidelines and notify registered research analysts about the changes to the SEBI certification requirement.
Financial institutions, brokerage firms, and research advisory companies are expected to adjust their compliance procedures accordingly.
Objective Behind The Regulatory Change
SEBI stated that the main goal of relaxing the SEBI certification requirement is to reduce unnecessary compliance burden on financial professionals working in support roles.
By introducing a simplified certification requirement for non-core research staff, the regulator aims to improve operational efficiency within the securities market.
The move is also aligned with SEBI’s broader ease of doing business initiative, which seeks to streamline regulatory processes without compromising investor protection.
Impact On The Securities Industry
The revised SEBI certification requirement is expected to benefit several participants in the financial ecosystem, including:
- Brokerage firms
- Research advisory companies
- Client relationship managers
- Sales teams associated with research analysts
- Investment advisory support staff
Industry experts believe the change will simplify regulatory compliance and reduce administrative workload for financial institutions operating in India’s capital markets.
Regulatory Oversight Still Remains Strong
While SEBI has relaxed the SEBI certification requirement for certain roles, the regulator has emphasized that strict oversight over research activities will continue.
Professionals who provide investment recommendations or research analysis must still meet full regulatory standards to ensure transparency, accountability, and investor protection in the securities market.
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