SEBI remodels certification programs for professionals
It has sought public comments by 27 November
The Securities and Exchange Board of India (SEBI) has proposed to expand the definition of ‘Associated Persons’. This includes individuals directly employed or engaged by intermediaries and regulated entities, and those desiring to participate in the securities market.
In its consultation paper, the market regulator suggested that the National Institute of Securities Markets (NISM) should introduce long-term certification courses; tighten criteria for certification exemptions; and allow Continuing Professional Education (CPE) programs to be conducted through electronic or hybrid modes.
It expressed that new products and services in the securities market had created more categories of regulated entities and professionals. Therefore, to ensure they have the right knowledge and skills, the definition of ‘Associated Persons’ must be widened.
While explaining the rationale, SEBI stressed that to attract the new generation to participate in the securities markets and enhance their employability, it proposed to include the words ‘intending to be engaged in the securities market’ in the definition of ‘Associated Persons’. This would enable the participation of students.
Furthermore, it suggested another major proposal that the NISM should introduce long-term certification courses (spanning three months or more) available in physical, online, or hybrid formats. These would serve as an additional route for obtaining NISM certification and Continuing Professional Education (CPE), supplementing the existing examination-based process.
SEBI emphasized that it would help in gaining in-depth knowledge about the securities market and help to facilitate capacity building and skill development of participants and professionals.
Besides, the regulator proposed to discontinue the exemptions in the securities market provided to individuals designated as principals (persons above 50 years) and those with 10 years of experience.
It added, in place of that, a new combined exemption criterion would apply only to individuals (aged 50 years or older) with a minimum of 10 years of relevant experience, who shall obtain certification through classroom credits or approved long-term courses.
SEBI will also allow CPE programs to be conducted through electronic or hybrid modes, replacing the current requirement for physical participation. This will be convenient for professionals countrywide, especially those located away from training centres.