Sebi mulls overhaul of certification program for securities market professionals

New Delhi, Nov 6 (PTI) Markets regulator Sebi on Thursday proposed expanding the definition of "Associated Persons" to include not only those directly employed or engaged by intermediaries and regulated entities but also individuals intending to participate in the securities market.

Additionally, Sebi has suggested that the National Institute of Securities Markets (NISM) should introduce long-term certification courses; tighten criteria for certification exemptions; and allow Continuing Professional Education (CPE) programmes to be conducted through electronic or hybrid modes.

In its consultation paper, the regulator noted that new products and services in the securities market have created more categories of regulated entities and professionals.

To ensure they have the right knowledge and skills, Sebi has suggested widening expanding the definition of "associated person." Sebi said that definition of "Associated Person is proposed to be broad based and more inclusive by adding the words 'a regulated entity', 'intending to be engaged' and 'directly and indirectly' with an objective of encouraging wider participation in the securities market".

Explaining the rationale, Sebi said that to attract the new generation to participate in securities markets and to enhance their employability, it has been proposed to include the words 'intending to be engaged in the securities market' in the definition of associated person so that more students can participate in the securities markets.

Another major proposal suggests that the NISM should introduce long-term certification courses--spanning three months or more--available in physical, online, or hybrid formats. These courses would serve as an additional route for obtaining NISM certification and Continuing Professional Education (CPE), supplementing the existing examination-based process.

The move would help in gaining in-depth knowledge as well as help in facilitating capacity building and skill development of participants and professionals in the securities market.

Besides, the regulator has proposed to discontinue the exemptions provided to individuals designated as "principals", persons above 50 years and those with 10 years of experience in the securities market.

Instead, a new combined exemption criterion would apply only to individuals aged 50 years or older with a minimum of 10 years of relevant experience, who could obtain certification through classroom credits or approved long-term courses rather than exams, Sebi suggested.

Also, Sebi has proposed to allow CPE programmes to be conducted through electronic or hybrid modes, replacing the current requirement for physical participation. This move is aimed at increasing accessibility and convenience for professionals across the country, especially those located away from training centres.

The Securities and Exchange Board of India (Sebi) has sought public comments until November 27 on the proposals. PTI SP MR