## Policy Analysis Report: Securities and Exchange Board of India (SEBI) Notification on Certification of Associated Persons in the Securities Markets
**1. Executive Summary:**
This report analyzes a notification issued by the Securities and Exchange Board of India (SEBI) regarding the certification of associated persons in the securities markets, specifically those associated with Alternative Investment Funds (AIFs). This notification amends previous regulations by expanding the acceptable certifications for key personnel managing different categories of AIFs. The core purpose is to ensure that key personnel possess the necessary expertise to manage AIFs, thereby strengthening investor protection. The key finding is the broadening of acceptable certifications from the National Institute of Securities Market (NISM), providing more flexibility while maintaining competence standards.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of the SEBI notification regarding the certification of associated persons in the securities markets, as published in the Gazette of India on June 25, 2025. This analysis is based solely on the provided policy text.
**3. Policy Overview:**
* This notification amends previous regulations regarding the certification of associated persons, specifically Notification No. SEBILADNROGN2024176 dated May 10, 2024.
* **Core Objective:** To ensure that key personnel of the Manager of an Alternative Investment Fund (AIF) possess the requisite certifications from the National Institute of Securities Market (NISM), thereby enhancing investor protection and professional standards within the AIF sector.
**4. Background and Rationale:**
This notification appears to be an amendment designed to provide greater flexibility and potentially broaden the pool of qualified personnel who can manage AIFs. The original policy (SEBILADNROGN2024176) required key personnel to pass the NISM SeriesXIXC certification exam. The amendment expands acceptable certifications to include new exams tailored to specific AIF categories. This suggests a recognition that different AIF categories may require specialized knowledge, and that multiple certifications can adequately demonstrate that knowledge.
**5. Key Provisions / Changes:**
This notification introduces the following key changes:
* **Specific Part of Original Policy Changed:** The notification modifies the certification requirements for key personnel within the key investment team of the Manager of an AIF, as initially defined by Notification No. SEBILADNROGN2024176 dated May 10, 2024 and referencing the Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012.
* **New Rule/Provision:**
* For Category I and II AIFs, key personnel can now obtain certification by passing either the NISM SeriesXIXC: Alternative Investment Fund Managers Certification Examination *or* the NISM SeriesXIXD: Category I and II Alternative Investment Fund Managers Certification Examination.
* For Category III AIFs, key personnel can now obtain certification by passing either the NISM SeriesXIXC: Alternative Investment Fund Managers Certification Examination *or* the NISM SeriesXIXE: Category III Alternative Investment Fund Managers Certification Examination.
* **Difference/Effect of Change:** The change introduces alternative certification options specific to the category of AIF being managed. This allows individuals to demonstrate competence through an exam tailored to the nuances of Category I/II or Category III AIFs, potentially leading to more specialized expertise within those categories. It also broadens the pool of individuals who meet the certification requirement.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Managers of Alternative Investment Funds (AIFs), specifically those managing Category I, Category II, and Category III AIFs.
* Key personnel functioning in the key investment team of the Manager of an AIF.
* The National Institute of Securities Market (NISM), as the certifying body.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Securities and Exchange Board of India (SEBI) is the responsible agency for implementing and enforcing this notification. The National Institute of Securities Market (NISM) is responsible for providing the certifications.
* **Timelines:** AIFs existing as of June 25, 2025, must obtain the requisite certifications by July 31, 2025.
* **Procedure:** Individuals must pass the specified NISM certification examinations. The notification references specific communiques from NISM that likely detail the exam content and procedures.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* Increased flexibility for AIF managers in meeting certification requirements.
* Potentially a broader pool of qualified personnel available to manage AIFs.
* Potentially more specialized expertise within specific categories of AIFs (Category I/II and Category III).
* Overall, the aim is to strengthen the professional standards within the AIF sector and improve investor protection by ensuring key personnel possess relevant expertise.
**9. Conclusion:**
The SEBI notification amends existing regulations concerning the certification of associated persons managing Alternative Investment Funds. By expanding the acceptable certifications to include exams specific to Category I/II and Category III AIFs, the notification aims to provide greater flexibility, broaden the pool of qualified personnel, and potentially enhance specialized expertise within the AIF sector. This amendment is significant as it reflects a nuanced approach to competence standards in the AIF market, balancing rigor with practicality. The notification underscores SEBI's commitment to fostering a robust and well-regulated AIF ecosystem.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for securities markets in India.
Mumbai: City in Maharashtra, location of the Securities and Exchange Board of India office mentioned in the notification.
Securities and Exchange Board of India Certification of Associated Persons in the Securities Markets Regulations, 2007: A set of regulations pertaining to the certification of associated persons in the securities markets.
CAPS Regulations, 2007: Abbreviated reference to the Securities and Exchange Board of India Certification of Associated Persons in the Securities Markets Regulations, 2007.
Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012: Regulations concerning alternative investment funds.
Alternative Investment Fund: A type of investment fund governed by specific regulations.
National Institute of Securities Market: An institute that provides certification for individuals in the securities market.
NISM SeriesXIXC: Alternative Investment Fund Managers Certification Examination: A specific certification examination offered by the National Institute of Securities Market for alternative investment fund managers.
NISM Certification SeriesXIXC: Alternative Investment Fund Managers202401: A communiqu number associated with the NISM SeriesXIXC: Alternative Investment Fund Managers Certification Examination.
Category I Alternative Investment Fund: A category of Alternative Investment Fund.
Category II Alternative Investment Fund: A category of Alternative Investment Fund.
NISM SeriesXIXD: Category I and II Alternative Investment Fund Managers Certification Examination: A specific certification examination offered by the National Institute of Securities Market for Category I and II Alternative Investment Fund managers.
NISM Certification SeriesXIXD: Category I and II Alternative Investment Fund Managers202501: A communiqu number associated with the NISM SeriesXIXD: Category I and II Alternative Investment Fund Managers Certification Examination.
Category III Alternative Investment Fund: A category of Alternative Investment Fund.
NISM SeriesXIXE: Category III Alternative Investment Fund Managers Certification Examination: A specific certification examination offered by the National Institute of Securities Market for Category III Alternative Investment Fund managers.
NISM Certification SeriesXIXE: Category III Alternative Investment Fund Managers202502: A communiqu number associated with the NISM SeriesXIXE: Category III Alternative Investment Fund Managers Certification Examination.
Babitha Rayudu: Executive Director at Securities and Exchange Board of India.
New Delhi: City in Delhi, location of Government of India Press.
Delhi: City in Delhi, location of Controller of Publications.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 458] िई कलपली, ब धिार, ििू 25, 2025/आिाढ़ 4, 1947
No. 458] NEW DELHI, WEDNESDAY, JUNE 25, 2025/ASHADHA 4, 1947
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
म ंबई, 25 िूि, 2025
भारतीय प्रजतभजू त और जिजिमय बोडड
(प्रजतभजू त बािारों म ेंसहयक्त व्यजक्तयों का प्रमाणीकरण) जिजियम, 2007
के तहत अजधसचू िा
फा. स.ं सबे ी/एलएडी-एिआरओ/िीएि/2025/249.— भारतीय प्रजतभूजत और जिजिमय बोडड (प्रजतभूजत बािारों
में सहय क्त व्यजक्तयों का प्रमाणीकरण) जिजियम, 2007 के जिजियम 3 के अि सार, बोडड, अजधसूचिा िारी करके, ककसी भी
प्रिगड के सहय क्त व्यजक्तयों (जिजियमों में यथा पररभाजित) से यह कह सकेगा कक ि ेिरूरी प्रमाणपत्र प्राप्त करें ।
1. भारतीय प्रजतभूजत और जिजिमय बोड ड[आि कजपपक जिजिधाि (जििेि) जिजधयााँ] जिजियम, 2012 के जिजियम 4 के खडं
(छ) के उप-खडं (i) के अि सार, बोडड िे 10 मई, 2024 को अजधसूचिा (सं. सेबी/एल.ए.डी.-
एि.आर.ओ./िी.एि./2024/176) िारी करके यह कहा था कक आि कजपपक जििेि जिजध (ए.आई.एफ.) के प्रबंधक के
म ख्य जििेि लल में कायड करिे िाले सहयोगी (सहय क्त) व्यजक्तयों में से कम से कम एक म ख्य व्यजक्त राष्ट्रीय प्रजतभूजत
बािार संस्ट्थाि (एि.आई.एस.एम.) द्वारा 10 िििरी, 2024 को िारी की गई जिज्ञजप्त
4176 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
(स.ं एिआईएसएम/सर्टडकफकेिि/सीरीज़-XIX-C:आपटरिेरटि इन्िेस्ट्टमेंट फंड मैिेिसड/2024/01) म ें बताई गई
प्रमाणीकरण परीक्षा (“रा.प्र.बा.स.ं – श्रंखला-XIX-C: आि कजपपक जििेि जिजध प्रबंधक प्रमाणीकरण परीक्षा”) उत्तीणड
करके एि.आई.एस.एम. का प्रमाणपत्र हाजसल करेगा ।
2. अब, बोडड, भारतीय प्रजतभूजत और जिजिमय बोडड [आि कजपपक जिजिधाि (जििेि) जिजधया]ाँ जिजियम, 2012 के
जिजियम 4 के खंड (छ) के उप-खंड (i) के साथ परित भारतीय प्रजतभूजत और जिजिमय बोड ड (प्रजतभूजत बािारों म ें
सहय क्त व्यजक्तयों का प्रमाणीकरण) जिजियम, 2007 के जिजियम 3 के अि सार, एतद्द्वारा यह अजधसूजचत करता ह ैकक:
(i) प्रिगड-I की ए.आई.एफ. या प्रिगड-II की ए.आई.एफ. या प्रिग-ड I और प्रिग-ड II की ए.आई.एफ. के प्रबंधक के
म ख्य जििेि लल में कायड करिे िाल े सहयोगी व्यजक्तयों में से कम से कम एक म ख्य व्यजक्त या तो
एि.आई.एस.एम. द्वारा 10 िििरी, 2024 को िारी की गई जिज्ञजप्त
(स.ं एिआईएसएम/सर्टडकफकेिि/सीरीज़-XIX-C:आपटरिेरटि इन्िेस्ट्टमेंट फंड मिै ेिस/ड 2024/01) म ें बताई
गई प्रमाणीकरण परीक्षा (“रा.प्र.बा.स.ं – श्रंखला-XIX-C: आि कजपपक जििेि जिजध प्रबंधक प्रमाणीकरण
परीक्षा”) उत्तीणड करके या कफर एि.आई.एस.एम. द्वारा 29 अप्रलै , 2025 को िारी की गई जिज्ञजप्त
(स.ं एिआईएसएम/सर्टडकफकेिि/सीरीज़-XIX-D: कैटेगरी I एंड II आपटरिेरटि इन्िेस्ट्टमेंट फंड
मैिेिसड/2025/01) म ें बताई गई प्रमाणीकरण परीक्षा [“रा.प्र.बा.स.ं – श्रंखला-XIX-D: प्रिग-ड I एिं प्रिगड-II
आि कजपपक जििेि जिजध प्रबंधक (ए.आई.एफ.) प्रमाणीकरण परीक्षा”] उत्तीणड करके एि.आई.एस.एम. का
प्रमाणपत्र हाजसल करेगा ।
(ii) प्रिगड-III की ए.आई.एफ. के प्रबंधक के म ख्य जििेि लल म ेंकाय डकरि ेिाल ेसहयोगी व्यजक्तयों म ेंस ेकम से कम
एक म ख्य व्यजक्त या तो एि.आई.एस.एम. द्वारा 10 िििरी, 2024 को िारी की गई जिज्ञजप्त
(स.ं एिआईएसएम/सर्टडकफकेिि/सीरीज़-XIX-C:आपटरिेरटि इन्िेस्ट्टमेंट फंड मिै ेिस/ड 2024/01) म ें बताई
गई प्रमाणीकरण परीक्षा (“रा.प्र.बा.स.ं – श्रंखला-XIX-C: आि कजपपक जििेि जिजध प्रबंधक प्रमाणीकरण
परीक्षा”) उत्तीणड करके या कफर एि.आई.एस.एम. द्वारा 29 अप्रलै , 2025 को िारी की गई जिज्ञजप्त
(स.ं एिआईएसएम/सर्टडकफकेिि/सीरीज़-XIX-E: कैटेगरी III आपटरिेरटि इन्िेस्ट्टमेंट फंड मैििे स/ड 2025/02)
में बताई गई प्रमाणीकरण परीक्षा [“रा.प्र.बा.स.ं – श्रंखला-XIX-E: प्रिग-ड III आि कजपपक जििेि जिजध
(ए.आई.एफ.) प्रबंधक प्रमाणीकरण परीक्षा”] उत्तीणड करके एि.आई.एस.एम. का प्रमाणपत्र हाजसल करेगा ।
3. इस अजधसूचिा के प्रकाजित होिे की तारीख को जितिे भी ए.आई.एफ. होंगे, उन्ह ें 31 िल ाई, 2025 तक िरूरी
प्रमाणपत्र हाजसल करिा होगा ।
4. यह अजधसूचिा रािपत्र में इसके प्रकाजित होि े की तारीख स ेलाग ूहोगी ।
5. इस अजधसूचिा के प्रकाजित होत े ही तारीख 10 मई, 2024 की अजधसूचिा (सं. सेबी/एल.ए.डी.-
एि.आर.ओ./िी.एि./2024/176) जिरस्ट्त हो िाएगी (ककंत उस अजधसूचिा के जिरस्ट्त होि ेस ेपहल ेिो क छ भी ककया
गया हो या ि ककया गया हो, उस पर कोई असर िहीं पड़ेगा) ।
बबीता राय डू, कायडपालक जिलिे क
[जिज्ञापि-III/4/असा./191/2025-26][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 25th June, 2025
NOTIFICATION UNDER SECURITIES AND EXCHANGE BOARD OF INDIA (CERTIFICATION OF
ASSOCIATED PERSONS IN THE SECURITIES MARKETS) REGULATIONS, 2007.
F. No. SEBI/LAD-NRO/GN/2025/249.— In terms 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 person as defined in the
Regulations to obtain requisite certification(s).
1. In terms of sub-clause (i) of clause (g) of regulation 4 of the Securities and Exchange Board of India
(Alternative Investment Funds) Regulations, 2012, the Board had issued Notification No. SEBI/LAD-
NRO/GN/2024/176 dated May 10, 2024, as per which 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.
2. Now, in terms of Regulation 3 of the CAPS 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 notifies that:
(i) at least one key personnel, amongst the associated persons functioning in the key investment team of
the Manager of Category I Alternative Investment Fund or Category II Alternative Investment Fund
or Category I and II Alternative Investment Fund, shall obtain certification from the National Institute
of Securities Market by passing either 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 or the NISM
Series-XIX-D: Category I and II Alternative Investment Fund Managers Certification Examination as
mentioned in the communiqué No. NISM/ Certification/ Series-XIX-D: Category I and II Alternative
Investment Fund Managers/2025/01 dated April 29, 2025, issued by the National Institute of
Securities Market.
(ii) at least one key personnel, amongst the associated persons functioning in the key investment team of
the Manager of Category III Alternative Investment Fund, shall obtain certification from the National
Institute of Securities Market by passing either 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 or the NISM
Series-XIX-E: Category III Alternative Investment Fund Managers Certification Examination as
mentioned in the communiqué No. NISM/ Certification/ Series-XIX-E: Category III Alternative
Investment Fund Managers/2025/02 dated April 29, 2025, issued by the National Institute of Securities
Market.
3. The Alternative Investment Funds, existing as on the date of publication of this notification, shall obtain
requisite certification on or before July 31, 2025.
4. This notification shall come into force on the date of its publication in the Official Gazette.
5. The Notification No. SEBI/LAD-NRO/GN/2024/176 dated May 10, 2024, except for anything done or omitted
to be done under the said notification, shall stand rescinded with the publication of this notification.
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./191/2025-26]
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.