Securities and Exchange Board of India (SEBI) issued a significant notification on May 10, 2024, concerning the certification of associated persons in the securities markets, specifically targeting Alternative Investment Funds (AIFs). This notification mandates that at least one key personnel within the investment team of an AIF manager must obtain certification from the National Institute of Securities Market (NISM).
SEBI’s notification, No. SEBI/LAD-NRO/GN/2024/176, underscores the regulatory framework established by 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 (Alternative Investment Funds) Regulations, 2012. The requirement for key personnel in AIFs to obtain NISM certification, specifically the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination, is a strategic move aimed at enhancing competency and professionalism within the AIF sector.
By necessitating certification for key personnel, SEBI aims to ensure a higher standard of expertise and competence in managing alternative investments. This move aligns with global trends where regulatory bodies emphasize professional qualifications to safeguard investor interests and maintain market integrity. Furthermore, it reflects SEBI’s commitment to fostering a robust regulatory environment that promotes investor confidence and market stability.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 10th May, 2024
Notification under Securities and Exchange Board of India
(Certification of Associated Persons in the Securities Markets) Regulations, 2007.
No. SEBI/LAD-NRO/GN/2024/176.—In terms of regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 read with sub-clause (i) of clause (g) of regulation 4 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, the Board hereby issues the following notification:
1. At least one key personnel, amongst the associated persons functioning in the key investment team of the Manager of an Alternative Investment Fund, shall obtain certification from the National Institute of Securities Market by passing the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/ Series-XIX-C: Alternative Investment Fund Managers/2024/01 dated January 10, 2024 issued by the National Institute of Securities Market.
This notification shall come into force on the date of its publication in the Official Gazette.
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./099/2024-25]
