SEBI has introduced a lighter NISM certification for sales staff performing non-core advisory functions. Core personnel are still required to complete existing Level 1 and Level 2 certifications.
SEBI Relaxes PAIA Certification for Non-Core Advisory Sales Staff
The Securities and Exchange Board of India (SEBI) has issued new guidelines allowing a simplified NISM certification process for Persons Associated with Investment Advice (PAIA) involved in non-core activities such as sales. This decision aims to distinguish between core investment advisory personnel and those engaged primarily in non-advisory functions, thus streamlining compliance obligations for sales staff.
Notably, core investment advisors must still meet the rigorous standards set by existing Level 1 and Level 2 certifications, ensuring that those providing substantive investment advice maintain a high level of professionalism and qualifications. The regulations target improving operational efficiencies while acknowledging the varied roles within advisory services.
These changes are likely to benefit sales personnel by easing the compliance burden, allowing them to focus more on client interactions rather than regulatory burdens. This move may encourage more individuals to participate in the investment advisory field, thereby enhancing the distribution of investment products.
Citations
- SEBI Notification (2026)
