SEBI Relaxes Certification Rules for Non-Advisory Staff at Investment Advisors

The Securities and Exchange Board of India (SEBI) has made a relaxation of the certificate requirement for some employees who work for registered investment advisors as part of its Ease of Doing Business initiative. This has been done to ease the burden on employees who do not offer any advice related to investments and merely engage in sales and other activities.

As per the prevailing regulations, all Persons Associated with Investment Advice (PAIA) were mandated to pass two certifications from the National Institute of Securities Markets (NISM) – NISM Series-X-A (Investment Adviser Level 1) and NISM Series-X-B (Investment Adviser Level 2). However, the regulator received concerns from market stakeholders that individuals who are just involved in sales and client servicing roles need not undergo such a rigorous certification process.

As such, SEBI has come up with a new and more streamlined certification programme for employees, including salespersons, relationship officers, and other employees who interact with customers but do not provide investment advice to them. Such employees will now have to take the NISM Series-XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination.

Investment advisors who are directly involved in such activity shall still be required to take both the NISM Series-X-A and Series-X-B examinations. On the other hand, those who are already certified in these two exams prior to the circular shall no longer be required to take the new exam right away, but only at the expiration of their current certifications.

These rules became operative from June 24, 2026. In this way, SEBI will be able to streamline the regulatory requirements of its non-advisory employees without compromising on the qualification criteria of the professionals who are meant to provide investment advice.