The Securities and Exchange Board of India (SEBI), on June 24, 2026, issued a circular introducing a simplified certification framework for certain Persons Associated with Investment Advice (PAIA) as part of its ease of doing business initiatives for investment advisers.
Under the revised framework, PAIA who perform only sales and other non-core services, such as sales staff, relationship managers, and other personnel who interact with clients but are not directly involved in providing investment advice, will now be required to obtain the NISM Series-XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination. This replaces the requirement for such personnel to obtain the more comprehensive NISM Series-X-A (Investment Adviser Level 1) and NISM Series-X-B (Investment Adviser Level 2) certifications.
SEBI has clarified that PAIA who are directly involved in investment advisory functions will continue to be required to hold the Level 1 and Level 2 Investment Adviser certifications. Further, personnel performing sales and non-core functions who already possess the Level 1 and Level 2 certifications as of the date of the circular will not be required to immediately obtain the new certification and may do so upon expiry of their existing certifications. The circular came into force with immediate effect and the Investment Adviser Administration and Supervisory Body (IAASB) has been directed to amend its bye-laws and disseminate the revised requirements to registered investment advisers.
[Circular No. HO/38/12/11(5)2026-MIRSD-POD/I/14660/2026].
