SEBI has issued a circular relaxing the certification requirements for Persons Associated with Investment Advice (PAIA) who perform only sales and other non-core services as part of its ease of doing business initiative. While Regulation 7 of the SEBI (Investment Advisers) Regulations, 2013 requires PAIA to obtain NISM certification, SEBI has introduced a lighter certification requirement for staff such as sales personnel, relationship managers, and others who interact with clients but are not directly involved in providing investment advice. Such personnel must now pass the NISM Series-XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination. PAIA involved in investment advisory functions will continue to require the NISM Series-X-A (Level 1) and Series-X-B (Level 2) certifications. Existing PAIA already holding the Level 1 and Level 2 certifications need not immediately obtain the new certification and may do so upon expiry of their current certifications. The circular takes immediate effect.
Securities and Exchange Board of India
Circular No. HO/38/12/11(5)2026-MIRSD-POD/I/14660/2026 | Dated: June 24, 2026
To,
All registered Investment Advisers,
Investment Adviser Administration and Supervisory Body (IAASB)
Madam/ Sir,
Sub: Ease of Doing Business – Relaxation in certification requirement for Persons Associated with Investment Advice (PAIA) – Sales and other non-core services
1. In terms of Regulation 7 of Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (“IA Regulations”), Persons Associated with Investment Advice (PAIA), shall, inter-alia, obtain relevant certification from National Institute of Securities Market (NISM).
2. Vide Gazette Notification dated January 02, 2025 under Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007, it was, inter-alia, specified that PAIA shall obtain certification from NISM by passing the “NISM Series-X-A: Investment Adviser (Level 1) Certification Examination” and the “NISM Series-X-B: Investment Adviser (Level 2) Certification Examination”.
3. Based on the feedback from market participants and as a step towards ease of doing business, it has been decided to specify a lighter NISM certification module for PAIA, such as sales staff, relationship managers and other staff, who only perform sales and other non-core services. These staff have contact with the client but are not directly associated or involved in investment advice related aspects.
4. Accordingly, the following is being specified:
4.1. PAIA, who perform only sales and other non-core services, shall obtain certification from NISM by passing the “NISM Series–XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination”, as mentioned in the NISM Communique No. NISM/ Certification/ NISM-Series-XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination/ 2026/ 01 dated May 18, 2026.
4.2. PAIA, other than those who perform sales and other non-core services, shall continue to obtain certification from NISM by passing the “NISM Series-X-A: Investment Adviser (Level 1) Certification Examination” and the “NISM Series-X-B: Investment Adviser (Level 2) Certification Examination”.
5. The PAIA (as referred at paragraph 4.1 above) who have already obtained the NISM Series-X-A and NISM Series-X-B certifications, as on the date of this circular, shall not be required to undertake the NISM Series-XXV-B certification at this stage. Such PAIA shall obtain NISM Series-XXV-B certification only before expiry of the validity of their existing certifications.
6. The provisions of this circular shall come into force with immediate effect.
7. The Investment Adviser Administration and Supervisory Body, is advised to:
7.1. make necessary amendments to the relevant bye-laws and rules, for the implementation of this circular; and
7.2. bring the provisions of this circular to the notice of the registered Investment Advisers and also disseminate the same on its website.
8. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 7 of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 and Regulation 3(1) of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
9. This circular is issued with the approval of the competent authority.
10. This circular is available on SEBI website at sebi.gov.in under the category: ‘Legal → Circulars’.
Yours faithfully,
Divya Hamirbasia
Deputy General Manager
022-26449293
divyah@sebi.gov.in
