NOTICES
Notice No. 20240830-49 Notice Date 30 Aug 2024
Category Others Segment IA/RA
Subject – Extension in timeline to obtain fresh NISM Certification under Regulation 7(2) of SEBI (Investment Advisers) Regulations, 2013
In terms of Regulation 7(2) of Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (“IA Regulations”), Investment Advisers (“IAs”) are required to obtain the prescribed certifications from NISM (NISM-Series-XA and XB) (base certification). IAs are required to obtain the same base certifications before expiry of validity of such certifications. IAs have been raising concerns that the requirement to obtain the same base certification afresh every time, to keep their registration in force, creates an uncertainty of business continuity.
In order to address the concern raised by IAs, in the consultation paper dated August 06, 2024, on “Review of Regulatory Framework for Investment Advisers and Research Analysts”, it has been proposed that IAs and RAs shall be required to obtain the base certifications only initially at the time of registration as IA/RA. Thereafter, they shall be required to obtain a certification that shall be based only on the incremental changes or developments during the previous three years, or a period of time as may be specified, in the regulatory and professional space concerning IAs and RAs. Such certification on the incremental changes or developments shall be required to be obtained by IAs and RAs before expiry of previous certification.
Based on the representation received from various IAs and in view of the Review of Regulatory Framework for IAs and RAs, as approved by the competent authority, a one-time extension is granted till November 30, 2024 to obtain fresh certification by IAs whose base certification (NISM XA or NISM XB) is expiring on or before November 30, 2024.
Enlisted Investment Advisers are advised to take a note of the same and ensure compliance.
For any clarifications, email on [email protected]
For & on behalf of BSE Ltd.
Johnson Chiriyath Meghana Kulkarni
General Manager Deputy General Manager
Membership Operations and Membership Operations and
Membership Compliance Membership Compliance
