Sebi Notifies Certification Requirements For Distributors, Portfolio Management Services Staff

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These people must obtain certification from the National Institute of Securities Markets (NISM), the regulator said in two separate notifications dated September 7.

The capital markets regulator Securities and Exchange Board of India (Sebi) has established certification requirements for associated persons engaged by portfolio managers as distributors or employees with decision-making authority related to fund management.

These people must obtain certification from the National Institute of Securities Markets (NISM), the regulator said in two separate notifications dated September 7.

Associates, engaged by a portfolio manager as a distributor of the PMS, and associates acting as the main officers of a portfolio manager or an employee with decision-making power related to the management of funds, will have to obtain a NISM certification by passing the certification exam.

The portfolio managers must ensure that all associates who are distributors of portfolio management services (PMS) and who are key executives with decision-making power related to the management of funds, as of September 7, 2021, obtain certification within two years, said Sebi.

He further stated that a portfolio manager, who hires or employs such a partner after September 7, 2021, will need to ensure that such person obtains certification within one year from the date of his or her appointment. use.

However, an Associate, who being a PMS Distributor has obtained a valid AMFI Registration Number (ARN) or NISM certification, will be exempt from the requirement to obtain such certification.

Earlier in March, the Securities and Exchange Board of India (Sebi) notified new regulations for portfolio managers regarding their qualifications.

The move was to help recognize “the at least one year postgraduate securities market program offered by NISM” as an eligible qualification for portfolio managers.

Regarding the qualification of the portfolio manager, Sebi had stated that a portfolio manager must have a professional qualification in finance, law, accounting or business management from a university or an institution recognized by a recognized university. or a professional qualification by following a postgraduate program. on the securities market (portfolio management) of NISM.

The NISM postgraduate program is not expected to last less than a year.

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