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Date: 03-Jan-2025 Category: Extra Ordinary State: Union Government Country: India

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

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This gazette notification issued by the Securities and Exchange Board of India (SEBI) mandates that certain individuals and entities providing investment advice must obtain specific certifications from the National Institute of Securities Markets (NISM).
  • It outlines the required certifications for individual investment advisors, principal officers of non-individual investment advisors, those associated with providing investment advice, and partners in partnership firms engaged in investment advisory services.
  • The notification also introduces a renewal examination to ensure continuous compliance with certification requirements.

Key Changes

  • The notification mandates that individuals and entities involved in providing investment advice must obtain NISM certifications.
  • It specifies that individuals must pass the NISM Series-X-A: Investment Adviser (Level 1) and NISM Series-X-B: Investment Adviser (Level 2) certification examinations.
  • A new requirement is introduced for a renewal examination, the NISM Series-X-C: Investment Adviser Certification (Renewal) Examination, to be taken before the expiry of existing certifications.
  • The notification rescinds previous notifications No. LAD-NRO/GN/2013-14/13/6109 dated June 19, 2013 and No. LAD-NRO/GN/2013-14/42/118 dated January 27, 2014, except for actions already taken or omitted under those notifications.
  • The notification is effective from the date of its publication in the Official Gazette, which is January 3, 2025.

Impact Analysis

Individual Investment Advisors

  • Action Items: Individual advisors should register for the required NISM exams and ensure they comply with the renewal requirements before their existing certifications expire.

Non-Individual Investment Advisors

  • Action Items: Non-individual investment advisors should ensure their principal officers are aware of the certification requirements and take necessary steps to comply.

Partners in Investment Advisory Firms

  • Action Items: Partnership firms providing investment advice should ensure that all relevant partners obtain the required certifications and renewals.

Associated Persons

  • Action Items: Investment advisory firms must identify all associated persons and ensure they comply with the certification requirements.

National Institute of Securities Markets (NISM)

  • Action Items: NISM should ensure sufficient capacity and resources to conduct the required examinations.

Securities and Exchange Board of India (SEBI)

  • Action Items: SEBI should establish a process for monitoring and enforcing compliance with the new certification requirements.

Key Entities Referenced

Securities and Exchange Board of India (SEBI): The regulatory body issuing the notification and responsible for overseeing the securities market. National Institute of Securities Markets (NISM): The institute responsible for conducting the certification examinations for investment advisors. Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007: The primary regulation under which the notification is issued. Securities and Exchange Board of India (Investment Advisers) Regulations, 2013: The regulation that governs investment advisors and their certification requirements. NISM Series-X-A: Investment Adviser (Level 1) Certification Examination: One of the required certification examinations for investment advisors NISM Series-X-B: Investment Adviser (Level 2) Certification Examination: One of the required certification examinations for investment advisors NISM Series-X-C: Investment Adviser Certification (Renewal) Examination: The renewal examination required to maintain certification
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-04012025-259919 xxxGIDHxxx CG-MH-E-04012025-259919 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 07] िई कदल्ली, ि क्रिार, िििरी 3, 2025/पौि 13, 1946 No. 07] NEW DELHI, FRIDAY, JANUARY 3, 2025/PAUSHA 13, 1946 भारतीय प्रजतभजू त और जिजिमय बोडड अजधसचू िा म ंबई, 2 िििरी, 2025 भारतीय प्रजतभजू त और जिजिमय बोडड (प्रजतभजू त बािारों म ेंसहयक्त व्यजक्तयों का प्रमाणीकरण) जिजियम, 2007 के तहत अजधसचू िा स.ं सबे ी/एलएडी-एिआरओ/िीएि/2025/223.—भारतीय प्रजतभूजत और जिजिमय बोडड (प्रजतभूजत बािारों म ें सहय क्त व्यजक्तयों का प्रमाणीकरण) जिजियम, 2007 के जिजियम 3 के उप-जिजियम (1) के अि सार, बोड,ड अजधसूचिा िारी करके, ककसी भी प्रिगड के सहयक्त व्यजक्तयों (िैसा जिजियमों म ें पररभाजित ककया गया ह)ै स े यह कह सकेगा कक िे िरूरी प्रमाणपत्र प्राप्त करें । 2. भारतीय प्रजतभूजत और जिजिमय बोड ड [जिजिधाि (जििेि) सलाहकार] जिजियम, 2013 के जिजियम 7 के उप-जिजियम (2) के अि सार, बोडड ि े तारीख 19 िूि, 2013 की अजधसूचिा सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2013- 14/13/6109 और तारीख 27 िििरी, 2014 की अजधसूचिा सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2013-14/42/118 िारी की थी, जििके अि सार जििेि सलाह देि ेमें ि टे हुए जििेि (जिजिधाि) सलाहकारों और उिके सहय क्त (सहयोगी) व्यजक्तयों (जििम ेंउिके भागीदार और प्रजतजिजध भी िाजमल ह)ैं के जलए राष्ट्रीय प्रजतभूजत बािार संस्ट्थाि की तारीख 21 मई, 2013 की जिज्ञजप्त सं. एिआईएसएम/सर्टडकिकेिि/सीरीज़-X-ए:आईए-एल1/2013/01 में बताई गई “एिआईएसएम-श्रंखला-X-ए: जििेि सलाहकार (स्ट्तर 1) प्रमाणीकरण परीक्षा” उत्तीणड करके और राष्ट्रीय प्रजतभूजत 84 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] बािार संस्ट्थाि की तारीख 26 ििम्बर, 2013 की जिज्ञजप्त सं. एिआईएसएम/सर्टडकिकेिि/सीरीज़-X-बी:आईए- एल2/2013/01 म ें बताई गई “एिआईएसएम-श्रंखला-X-बी: जििेि सलाहकार (स्ट्तर 2) प्रमाणीकरण परीक्षा” उत्तीण ड करके राष्ट्रीय प्रजतभूजत बािार संस्ट्थाि का (के) प्रमाणपत्र हाजसल करिा िरूरी था । 3. अब, बोडड, भारतीय प्रजतभूजत और जिजिमय बोडड [जिजिधाि (जििेि) सलाहकार] जिजियम, 2013 के जिजियम 7 के उप- जिजियम (2) के साथ परित भारतीय प्रजतभूजत और जिजिमय बोडड (प्रजतभूजत बािारों में सहय क्त व्यजक्तयों का प्रमाणीकरण) जिजियम, 2007 के जिजियम 3 के अि सार, एतद्द्वारा यह अजधसूजचत करता ह ै कक एकल (इंजडजिि अल) जििेि सलाहकार या ‘एकल की श्णे ी म ेंि आि ेिाल े(िॉि-इंजडजिि अल) जििेि सलाहकार’ का म ख्य अजधकारी, जििेि सलाह से ि डे व्यजक्त और यकद जििेि सलाहकार एक भागीदार िमड (पाटडिरजिप िम)ड हो तो उसके भागीदार (पाटडिर) (िो जििेि सलाह देि े में ि टे हुए हों): (i) राष्ट्रीय प्रजतभूजत बािार संस्ट्थाि की तारीख 21 मई, 2013 की जिज्ञजप्त सं. एिआईएसएम/सर्टडकिकेिि/सीरीज़-X- ए:आईए-एल1/2013/01 म ें बताई गई “एिआईएसएम-श्रंखला-X-ए: जििेि सलाहकार (स्ट्तर 1) प्रमाणीकरण परीक्षा” उत्तीणड करके और राष्ट्रीय प्रजतभूजत बािार सस्ट्ं थाि की तारीख 26 ििम्बर, 2013 की जिज्ञजप्त स.ं एिआईएसएम/सर्टडकिकेिि/सीरीज़-X-बी:आईए-एल2/2013/01 में बताई गई “एिआईएसएम-श्रंखला-X-बी: जििेि सलाहकार (स्ट्तर 2) प्रमाणीकरण परीक्षा” उत्तीणड करके राष्ट्रीय प्रजतभूजत बािार संस्ट्थाि का (के) प्रमाणपत्र हाजसल करेगा (करेंग)े । (ii) मौिूदा प्रमाणपत्र (प्रमाणीकरण / सर्टडकिकेिि) की मान्यता की अिजध समाप्त होिे से पहले ही, राष्ट्रीय प्रजतभूजत बािार संस्ट्थाि की तारीख 5 ििम्बर, 2024 की जिज्ञजप्त सं. एिआईएसएम/सर्टडकिकेिि/एिआईएसएम-सीरीज़- X-सी: जििेि सलाहकार प्रमाणीकरण (प िरीक्षण) परीक्षा/2024/01 में बताई गई “एिआईएसएम-श्रंखला-X-C: जििेि सलाहकार प्रमाणीकरण (प िरीक्षण) परीक्षा” उत्तीण डकरके प्रमाणपत्र हाजसल करेगा (करेंगे), ताकक प्रमाणपत्र से संबंजधत अपक्षे ाओं का सदैि पालि स जिजित होता रह े। 4. यह अजधसूचिा रािपत्र म ेंइसके प्रकाजित होिे की तारीख से लाग ूहोगी । 5. इस अजधसूचिा के प्रकाजित होते ही तारीख 19 िूि, 2013 की अजधसूचिा सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2013- 14/13/6109 और तारीख 27 िििरी, 2014 की अजधसूचिा सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2013-14/42/118 जिरस्ट्त हो िाएँगी (ककंत इि अजधसूचिाओं के जिरस्ट्त होि े से पहले िो क छ भी ककया गया हो या ि ककया गया हो, उस पर कोई असर िहीं पडेगा) । बबीता राय डू, कायडपालक जिदिे क [जिज्ञापि-III/4/असा./863/2024-25][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 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 No. 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 Gazette. 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] 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.

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