Markets regulator Sebi on Wednesday announced that it is easing the certification process for sales and non-core staff in investment advisory roles. Under the new framework, sales staff, relationship managers, and other employees handling non-core functions will be allowed to take a simplified NISM certification, reducing the compliance burden on firms.
“Based on the feedback from market participants and as a step towards ease of doing business, it has been decided to specify a lighter NISM certification module for PAIA, such as sales staff, relationship managers and other staff, who only perform sales and other non-core services,” Sebi said in its circular.
These staff have contacts with the client but are not directly associated or involved in investment advice-related aspects, it added.
The provisions of this circular will come into force with immediate effect.
How the new system will work?
The regulator said, “PAIA who perform only sales and other non-core services, shall obtain certification from NISM by passing the ‘NISM Series–XXV-B’.”
PAIA, other than those who perform sales and other non-core services, will continue to obtain certification from NISM by passing:
- ‘NISM Series-X-A: Investment Adviser (Level 1) certification examination’
- ‘NISM SeriesX-B: Investment Adviser (Level 2) certification examination.
Passing the NISM certification exam ensures domain knowledge and professional preparedness.
These two examinations are comprehensive and were designed to test deep technical knowledge of investment advisory principles — covering financial planning, asset allocation, product knowledge, regulatory framework, ethics, and risk profiling. This level of rigour makes complete sense for someone who is actually formulating and delivering investment advice to a client.