Sebi introduces a simpler NISM certification for research services

India’s market regulator Sebi has introduced a simplified certification requirement for certain employees associated with research services, in a move aimed at improving ease of doing business in the securities market. The regulator said on Wednesday that staff involved in sales and other non-core activities related to research services will now be allowed to obtain a lighter certification module conducted by the National Institute of Securities Markets (NISM).

Under existing regulations, Persons Associated with Research Services (PARS) are required to obtain certification from NISM in accordance with the Sebi (Research Analysts) Regulations, 2014. Previously, this involved clearing the NISM Series-XV: Research Analyst Certification Examination, which is primarily designed for professionals directly involved in research activities.

Sebi said it has now developed a new certification module specifically tailored for employees who interact with clients but are not directly engaged in preparing or producing research reports.

Going forward, PARS engaged in sales and other non-core services will be required to obtain certification through the “NISM Series-XXV-A: Persons Associated with Research Services (Sales and Other Non-Core Services) Certification Examination.”

The regulator clarified that employees who have already obtained the NISM Series-XV certification will not be required to take the new examination immediately. Instead, they will be required to obtain the Series-XXV-A certification only after the validity of their existing Series-XV certificate expires.

At the same time, Sebi said that individuals who are directly involved in research functions will continue to be governed by the existing framework. These professionals will still be required to pass the NISM Series-XV Research Analyst Certification Examination, which remains mandatory for core research activities such as preparing investment recommendations or research reports.

The new certification structure effectively creates two different qualification tracks: one for professionals directly engaged in research and another for employees handling client-facing roles linked to research distribution or support functions.Sebi said the reform is intended to reduce unnecessary compliance burden for employees who are not directly involved in research functions while still maintaining regulatory oversight over activities connected to research services.

“The reform aligns with the objective of ensuring ease of doing business and fostering greater participation in research-related activities while upholding the interest of investors,” the regulator said in its statement.

The move is expected to benefit brokerage firms, investment advisory businesses and research houses where sales teams, relationship managers and other client-facing staff often distribute or discuss research reports without being part of the research process itself.