The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing amendments to the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (CAPSM Regulations). The proposed changes aim to update the regulations in light of market developments, increase clarity, and strengthen knowledge standards. Key proposals include the expansion of the “Associated Person” definition to cover regulated entities, those “intending to be engaged,” and those involved “directly or indirectly” to encourage wider participation and enhance knowledge. A new method for obtaining the required National Institute of Securities Markets (NISM) certificate is proposed: successfully completing long-term courses or programs offered by NISM, which would also count for Continuing Professional Education (CPE). Additionally, the method of conducting CPE programs will be expanded to include electronic mode for increased reach and convenience. Finally, SEBI proposes to remove existing exemptions from passing the certification exam previously available to “Principals,” persons over 50 years old, or those with 10 years of experience. This will be replaced by a new, combined exemption criterion for individuals who have at least 50 years of age and 10 years of relevant experience in the securities market, with the date of eligibility linked to the date of the examination or CPE. SEBI is soliciting public comments on these proposals until November 27, 2025.
Securities and Exchange Board of India
Consultation paper on Amendments to SEBI (CAPSM) Regulations, 2007
1. Objective
1.1. To solicit comments / views / suggestions from the public and other stakeholders on the proposed amendments to ‘SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (“CAPSM Regulations”)’. The following proposals are being made:
1.1.1 Review / Expansion of the definition of “Associated Persons”
1.1.2 Manner of obtaining certificate
1.1.3 Inclusion of electronic mode of participation for Continuing Professional Education (CPE) programs
1.1.4 Reviewing the exception criteria for manner of obtaining certificate
2. Background
2.1. Securities and Exchange Board of India (“SEBI”) vide ‘SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (“CAPSM Regulations”)’ may mandate “Associated Persons” to obtain requisite certificate from NISM for engagement or employment with regulated intermediaries.
2.2. The CAPSM Regulations specify the manner of obtaining NISM certificate and also the manner of renewing certificates by way of Continuing Professional Education requirements. To obtain NISM Certificate for the first time is by ‘passing the relevant Certification Examination’, which is valid for 3 years.
At the time of notification of CAPSM Regulations in 2007, certain exceptions were provided for some categories, such as “Principal”, persons having more than 50 years of age as on the date of notification of relevant Regulations, persons having more than 10 years of experience in securities markets as on the date of notification of relevant Regulations from passing the certification examination.
2.3. In view of the changes taking place in the Indian securities market and to strengthen and to bring more clarity and relevance, it is felt that a review of the existing CAPSM Regulations is needed. Accordingly, the following proposals are being made.
4.1 Public comments are sought on the following proposals along with rationale:
| S. No. |
Existing Regulation |
Proposed Regulation | Proposal and Rationale for change |
| 3.1 | Review / Expansion of the definition of “Associated Persons” | ||
| 3.1.1
|
As per Regulation 2 (1) (c) of CAPSM Regulations, Associated Person is defined as under: “Associated person” means a principal or employee of an intermediary or an agent or distributor or other natural person engaged in the securities business and includes an employee of a foreign portfolio investor or a foreign venture capital investor working in India. |
“Associated person” means a principal or employee of an intermediary or a regulated entity or an agent or distributor or other natural person engaged or intending to be engagedin the securities market, directly or indirectly, and includes an employee of a foreign portfolio investor or a foreign venture capital investor working in India.
|
Proposal: Definition of Associated Person is proposed to be broad based and more inclusive by adding the words “a regulated entity”, “intending to be engaged” and “directly and indirectly” with an objective of encouraging wider participation in the securities market.
Rationale: Certain persons associated Further, SEBI has also introduced new products and services in the securities markets, which led to creation of new categories of regulated entities or persons associated with securities market. It is desirable that these entities have relevant knowledge and expertise to perform their duties. Further to attract the new generation to participate in securities markets and to It may be noted that the decision to mandate |
| 3.2 | Manner of obtaining certificate | ||
| 3.2.1 | Introduction of long term courses by NISM for manner of obtaining certificate and CPE | ||
| Not mentioned in the Existing Regulations. | 4. (1) Subject to the provisions of this regulation, an associated person may obtain the certificate in any of the following manners, namely:-(a).. (b).. (c).. (d): by passing long- term course or programme as may be specified by NISM either in physical, online or hybrid mode, having a duration of three months or more. |
Proposal: It is proposed to include appropriate long term courses / long duration programs of NISM (in which course duration ranges from three months or more and is offered in either physical/classroom, or online, or in hybrid mode) as a new mode of obtaining NISM certificate and CPE.Rationale: Introduction of long-term courses offered by NISM will add more value by imparting in-depth knowledge in comparison to passing the certification examination which will serve as certifications while aiding capacity building.Therefore, including these long-term courses as an alternative to certain certification examinations will give more options to the participants. This will also facilitate capacity building and skill development of functionaries, participants and professionals in the Securities Markets. |
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| 3.3 | Inclusion of electronic mode of participation for CPE programs | ||
| 3.3.1
|
Regulation 2(1)(f) “Continuing Professional Education” (CPE) means any course, programme, training programme, activity, conference, seminar that has been accredited or approved by NISM to enhance the knowledge, skills and professional competency of associated persons in the areas of securities, governance and ethics; |
Regulation 2(1)(f) “Continuing Professional Education” (CPE) means any course, programme, training programme, activity, conference, seminar, that is conducted either in physical mode or in electronic mode, that has been accredited or approved by NISM to enhance the knowledge, skills and professional competency of associated persons in the areas of securities, governance and ethics; |
Proposal:
It is proposed that CPE Rationale: Keeping in mind ease and convenience of
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| 3.4 | Reviewing the exception criteria for manner of obtaining certificate and CPE | ||
| 3.4.1 | Review of Age criteria, Experience criteria and ‘Principal’ as exception category | ||
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a) Regulation 4(2):
An associated person being principal shall obtain the certificate in any of the manners b) Regulation 4(3): An associated person, other than a principal, who has attained the c) Regulation 2(1)(k): “principal” means the intermediary’s securities business including supervision, solicitation, conduct of business, and includes: (1) Sole Proprietors (0) Managing Partners and (0) Whole Time 4. (1) Subject to the provisions of this regulation, an (a)… (c) by delivering such number of formal classroom sessions in all or e) Regulation 4(4): An associated person other than those mentioned in sub regulation (2) or sub regulation (3) shall obtain the certificate in the |
a) Regulation 4(2) :
An associated person being shall obtain principal the certificate in any of the manners specified in clause (a) or clause (b) or clause (c) of sub regulation (1). b)n Regulation 4(3): An associated person, other than a who principal, has attained the age of fifty years or and who has alteast ten years of relevant experience in the securities markets in the activities mentioned in sub regulation (4) of regulation 3 on the date of examination/CPE as may be specified by the Board under sub regulation (1) of regulation 3, shall obtain the certificate in the relevant category in the manner specified in clause (a) or clause (b) or clause (d) of sub regulation (1). Since Regulation 4(2) is proposed to be deleted, correspondingly Regulation 2(1)(k) and Regulation (c) Regulation 2(1)(k): “principal” means persons who are actively engaged in the management of the intermediary’s securities business including supervision, solicitation, conduct of business, and includes: (1) Sole Proprietors (2) Managing Partners and (3) Whole Time Directors (d) Regulation 4(1)(c): 4. (1) Subject to the provisions of this regulation ,an associated person may obtain the certificate in any of the following manners, namely:- (a) (b) (c) by delivering such number of formal classroom sessions in all or specific of continuing programmes education as professional ——— may be specified by NISM from time to time. (e) Consequential changes in Regulation 4(4): An associated person other than those mentioned in sub regulation (2) or sub regulation (3) shall obtain the certificate in the manner specified in clause (a) or clause (d) of sub regulation (1). |
Proposal:
It is proposed to discontinue the exemptions provided to the the CAPSM regulations, years of age with relevant Rationale: Currently persons who are ‘principal’ as defined in the NISM has given feedback that the said exceptions provided in the CAPSM Regulations are being misused. Several It is proposed that exemption given to ‘Principal’ from giving NISM exam be removed. However, to give weightage to age and relevant work
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4.1.1 Whether to review/ expand the definition of “Associated Persons” (para 3.1.1) 4.1.2 Whether to include long term courses / long duration programs of NISM as manner of obtaining NISM certification and CPE (para 3.2.1 and 3.4.1(e)) 4.1.3 Whether to include electronic mode of delivery of participation for CPE programs (para 3.3.1)
4.1.4 Whether to replace the individual exemptions provided by criteria of “Principal”, “Age” and “Experience” in Regulation 4 (2) and 4 (3) for obtaining Certification with a new exemptions based on combined criteria of “Age” and “Experience” for obtaining Certification (para 3.4.1)
4.1.5 Whether the date of calculating the “Age” and “Experience” for a candidate can be linked to the date of examination/CPE (para 3.4.1(b))
4.2 Considering the implications of the aforementioned matters on the market participants, public comments are invited on the aforesaid proposals. The comments / suggestions should be submitted latest by November 27, 2025 through the online web-based form which can be accessed using the following link:
https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes
4.3 Kindly go through the instructions mentioned on the above link before submitting comments on the consultation paper.
4.4 In case of any technical issue in submitting your comment through web based public comments form, you may write to nismdivision@sebi.gov.in through email with the subject:
“Issues in submitting comments on Consultation paper on Amendments to SEBI (CAPSM) Regulations, 2007”
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