Archive · 7 Nov 2025
SEBI Proposes Revamped Certification for Market Professionals, Expanding Scope
The SEBI, which is like the main rule-maker for India's stock market, wants to update its rules for people who work in the market.
Right now, some people who help others invest, even if they aren't official, don't have to get special training.
SEBI wants to change this to include more people, like those planning to join the market or working in less-regulated areas.
They also plan to let people get certified by taking longer classes, like a three-month course, instead of just passing tests.
This is to make sure everyone has good, practical knowledge.
SEBI also wants experienced people, who used to be excused from getting certified, to either take these courses or earn credits.
They believe that just being around for a long time doesn't mean you know the latest rules.
These changes are aimed at making the market safer and more professional as new types of investments and ways of trading are appearing.
SEBI is proposing to revise its certification rules for people working in the securities market.
The definition of 'associated person' will be expanded to include those intending to enter the industry or working in loosely regulated areas.
Long-term academic courses offered by NISM will be an alternative to existing examination-based certifications.
Most exemptions for senior market professionals will be discontinued, though those over 50 with 10 years' experience may have alternative routes.
The changes aim to modernize the framework, ensure uniform competency, and adapt to the evolving Indian capital markets.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Proposed an overhaul of its certification framework for market intermediaries, including expanding the definition of 'associated person', introducing long-term courses as an alternative qualification, and phasing out most exemptions for senior professionals.
- When
- Thursday, November 7, 2025
- Where
- India
- Why
- To modernize the framework, bring more professionals under its ambit, ensure relevant knowledge and expertise, and address deficiencies in the current system.
SEBI's Rationale for Reforms
Potential Industry Concerns
Expanded Definition of 'Associated Person'
SEBI's Rationale for Reforms
SEBI aims to bring individuals planning to enter the industry or operating in loosely regulated areas under its oversight, addressing issues where people facilitate investments without registration or accountability. This includes those claiming to be agents for startups and AIFs.
Potential Industry Concerns
Market participants may perceive the expanded definition as stricter, potentially leading to pushback. While SEBI is broadening its scope, specific challenges in monitoring these 'loosely regulated corners' might arise.
Exemptions for Senior Professionals
SEBI's Rationale for Reforms
SEBI proposes to discontinue exemptions for senior market professionals, believing that uniform competency standards are necessary and that age or long tenure alone does not equate to current market knowledge or experience. However, those over 50 with 10+ years of experience may be exempt by accumulating credits or completing long-term courses.
Potential Industry Concerns
Experienced professionals who have been exempt may find the new requirements burdensome, even with alternative paths like credit accumulation or long-term courses. The transition from exemption to a structured learning or credit system could be a point of contention.
Certification Pathway
SEBI's Rationale for Reforms
SEBI is introducing long-term academic courses (three months or more) from NISM as an alternative to traditional examinations, focusing on practical knowledge and in-depth understanding of market functions to modernize the framework.
Potential Industry Concerns
While offering alternatives, some industry experts suggest that the current examination system is outdated and that workshops and conferences could also serve as effective training tools, implying that long-term courses might not be the sole or most effective solution for all.
- Regulator
- Securities and Exchange Board of India (SEBI)
- Regulation Under Review
- SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007
- Proposed Changes
- Expand definition of 'associated person', introduce long-term courses as alternative qualification, discontinue most exemptions for senior professionals, and digitize certification processes.
- New Definition of 'Associated Person' Includes
- Regulated entity, intending to be engaged, and directly or indirectly.
- Alternative Certification Path
- Completing a three-month or longer academic course at NISM.
- Exemption for Senior Professionals (Revised)
- Individuals aged 50+ with 10+ years of experience may get exemptions via classroom credits or long-term courses.
- Public Comment Deadline
- November 27, 2025
Sources
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