Securities and Exchange Board of India (SEBI) issued a notification on January 2, 2025, under the Certification of Associated Persons in the Securities Markets (CAPS) Regulations, 2007. It mandates investment advisers and associated persons to obtain certifications from the National Institute of Securities Markets (NISM). Specifically, individuals and principal officers of investment advisory firms, along with their partners and representatives, must pass the NISM-Series-X-A: Investment Adviser (Level 1) and NISM-Series-X-B: Investment Adviser (Level 2) Certification Examinations. Additionally, they must ensure continued compliance by clearing the NISM-Series-X-C: Investment Adviser Certification (Renewal) Examination before the validity of their existing certification expires. The notification supersedes earlier directives issued in 2013 and 2014, effectively rescinding them upon publication of this update. This move aims to ensure uniform compliance and professional competency in providing investment advice.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 2nd January, 2025
Notification under Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007
No. SEBI/LAD-NRO/GN/2025/223.—In terms of sub-regulation (1) of Regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (hereinafter referred to as “the CAPS Regulations, 2007”), the Board may require, by notification, any category of associated persons as defined in the Regulations to obtain requisite certification(s).
2. In terms of sub-regulation (2) of Regulation 7 of Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (hereinafter referred to as “the IA Regulations, 2013”), the Board had issued Notification LAD- NRO/GN/2013-14/13/6109 dated June 19, 2013 and Notification No. LAD-NRO/GN/2013-14/42/118 dated January 27, 2014, as per which investment advisers and their associated persons, including their partners and representatives, offering investment advice, were required to obtain certification(s) from the National Institute of Securities Markets by passing NISM Series-X-A: Investment Adviser (Level 1) Certification Examination and NISM Series-X-B: Investment Adviser (Level 2) Certification Examination, as mentioned in the NISM communiqué No. NISM/Certification/Series-X-A: IA-L1/2013/01 dated May 21, 2013 and NISM communiqué No. NISM/Certification/Series-X-B: IA-L2/2013/01 dated November 26, 2013 respectively.
3. Now, in terms of Regulation 3 of the CAPS Regulations, 2007 read with sub-regulation (2) of Regulation 7 of the IA Regulations, 2013, the Board hereby notifies, that an individual investment adviser or principal officer of a non-individual investment adviser, persons associated with investment advice and the partners of an investment adviser being a partnership firm, who are engaged in providing investment advice:
(i) shall obtain certification(s) from the National Institute of Securities Markets by passing the NISM-Series-X- A: Investment Adviser (Level 1) Certification Examination as mentioned in the NISM communiqué No. NISM/Certification/Series-X-A: IA-L1/2013/01 dated May 21, 2013 and NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination as mentioned in the NISM communiqué No. NISM/Certification/Series-X-B: IA-L2/2013/01 dated November 26, 2013.
(ii) shall in order to ensure continuity in the compliance with the certification requirements, before expiry of the validity of the existing certification, obtain the certification by passing the NISM-Series-X-C: Investment Adviser Certification (Renewal) Examination as mentioned in the NISM communiqué No. NISM/Certification/NISM-Series-X-C: Investment Adviser Certification (Renewal) Examination/2024/01 dated November 5, 2024.
4. This notification shall come into force on the date of its publication in the Official
5. The Notification No. LAD-NRO/GN/13/2013-14/6109 dated June 19, 2013 and Notification No. LAD- NRO/GN/2013-14/42/118 dated January 27, 2014, except for the things done or omitted to be done, shall stand rescinded with the publication of this notification.
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./863/2024-25]
