The initiative streamlines requirements for employees managing client relations, thereby reducing the compliance burden on firms.
”Based on the feedback from market participants and as a step towards ease of doing business, it has been decided to specify a lighter NISM certification module for PAIA, such as sales staff, relationship managers and other staff, who only perform sales and other non-core services,” SEBI said in its circular.
These staff have contacts with the client but are not directly associated or involved in investment advice-related aspects, it added.
The regulator said, ”PAIA who perform only sales and other non-core services, shall obtain certification from NISM by passing the ’NISM Series–XXV-B’.” PAIA, other than those who perform sales and other non-core services, will continue to obtain certification from NISM by passing the ’NISM Series-X-A: Investment Adviser (Level 1) certification examination’ and the ’NISM SeriesX-B: Investment Adviser (Level 2) certification examination.
Passing the NISM certification exam ensures domain knowledge and professional preparedness.
The provisions of this circular will come into force with immediate effect.
