Sebi notifies certification necessities for distributors, employees of portfolio administration providers


At the beginning of March, Sebi announced new regulations for portfolio managers regarding their qualifications

The capital markets regulator Sebi has introduced certification requirements for affiliates who are employed by portfolio managers as sales agents or employees with decision-making powers in relation to fund administration. These individuals must obtain certification from the National Institute of Securities Markets (NISM), the regulator said in two separate notices dated Sept. 7.

The associates appointed by a portfolio manager as distributors of the PMS and the associates who act as principal officers of a portfolio manager or an employee with decision-making authority regarding fund administration must obtain certification from the NISM by passing the certification exam.

Portfolio managers must ensure that all affiliates who are Portfolio Management Services (PMS) distributors and who are the primary persons with decision-making authority regarding fund management receive certification within two years of September 7, 2021, Sebi said.

It also states that a portfolio manager who is such a Connected Person after 7th such certification excluded.

In early March, the Securities and Exchange Board of India (Sebi) announced new regulations for portfolio managers regarding their qualifications. The move should help to recognize “NISM’s postgraduate program in the securities market of at least one year” as an appropriate qualification for portfolio managers.

Regarding the portfolio manager qualification, Sebi had said that a portfolio manager must have a professional degree in finance, law, accounting or business administration from a university or recognized institution, or a professional qualification by completing a postgraduate program in Securities market (portfolio management) from NISM.

NISM’s postgraduate program should last no less than a year.

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