SEBI Issued Guidelines for Investment Advisers

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SEBI Issued Guidelines for Investment Advisers to Operate in Stock Markets

SEBI ( Securities and Exchange Board of India ), the market regulator of India on 20th June, 2013 notified guidelines for investment advisers and their associated person and made it compulsory for them to get the requisite certifications for them to operate in stock market.

The notification released by SEBI ordered the investment advisers and their associates which includes representatives and partners offering investment advice to get a certification from the National Institute of Securities Markets ( NISM ) after passing the relevant examinations.

The notification also mentioned that the associated person, who has received certification by passing the NISM Certified Personal Finance Advisor ( CPFA ) examination before or on the day of the notification, need not apply for any such certification.

NISM ( National Institute of Securities Markets )

National Institute of Securities Markets is a public trust, established by the SEBI, the regulator for securities markets in India. It is located in Navi Mumbai, India.

NISM seeks to add to market quality through educational initiatives. It is an autonomous body governed by its Board of Governors. In pursuance of the announcement made by the Finance Minister in his Budget Speech in February 2005, SEBI established the NISM in Mumbai.

Stock Market Investment Advisors Qualifications :

  • The individual needs to a professional qualification or post – graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognised by the central or any state government or a recognised foreign university or institution.
  • If the investment advisor doesn’t have the minimum qualification, then he needs to be a graduate in any discipline with at least five years of experience in activities relating to advice in financial products.
  • Additionally, investment advisors are required to have a certification on financial planning / fund / asset or portfolio management or investment advisory services either from NISM or from any other organisation or institution, including Financial Planning Standards Board India or any recognised stock exchange in India, provided such certification is accredited by National Institute of Securities Markets ( NISM ).

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