Description

SEBI gazette notification announcing the second amendment to the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, effective November 25, 2025.

Summary

SEBI has issued the second amendment to the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, through gazette notification CG-MH-E-25112025-267962. The amendment comes into effect from the date of publication in the official gazette on November 25, 2025. This amendment modifies key terminology throughout the regulations, replacing references to “investment advisers (investors)” with simplified terms, and updates educational qualification requirements for investment advisers and their principal officers.

Key Points

  • Official gazette notification number: CG-MH-E-25112025-267962
  • Notification issued under Section 30(1) read with Section 11(2)(b) of SEBI Act, 1992
  • Effective date: November 25, 2025 (date of gazette publication)
  • Simplifies terminology by replacing “Viniyojakta (Niveshak)” with “Niveshak” (investor) throughout regulations
  • Removes references to sub-brokers from Regulation 4
  • Updates educational qualification requirements in Regulation 7
  • Applies to individual investment advisers and non-individual investment advisers

Regulatory Changes

Terminology Changes:

  • The name of regulations changes from “SEBI [Viniyaman (Nivesh) Salahkaar]” to “SEBI (Nivesh Salahkaar)”
  • Throughout the regulations, references to “Viniyojakta” or “Viniyojakta (Niveshak)” replaced with “Niveshak” (investor)
  • References to “Viniyaman” or “Viniyaman (Nivesh)” replaced with “Nivesh” (investment)

Regulation 4 Amendment:

  • Removes words “and sub-brokers” and “or sub-brokers” from clause (chh)

Regulation 7 - Qualification Requirements:

Sub-regulation (1) amendments:

  • Principal officers of investment advisers OR persons associated with investment advice must possess specified qualifications
  • Clause (a) replaced: Graduate degree from government-recognized Indian or foreign university/institution, or equivalent qualification, or CFA Charter from CFA Institute, AND relevant certificate from NISM or NISM-recognized organization
  • Clause (g) replaced: Post Graduate Program in Securities Market (Investment Advisory) from NISM OR Post Graduate Program in Financial Planning from NISM OR any other program from NISM as specified by SEBI
  • Second proviso amended: References to both clause (a) and clause (g) added

Sub-regulation (2) replaced:

  • Applies qualification requirements to individual investment advisers registered under these regulations
  • Also applies to principal officers and persons associated with investment advice of non-individual investment advisers
  • For partnership firms, applies to partners as well

Compliance Requirements

For All Investment Advisers:

  • Review and understand updated terminology changes across all regulatory references
  • Ensure principal officers meet revised qualification requirements
  • Verify all persons associated with investment advice possess mandated qualifications

For Individual Investment Advisers:

  • Must meet educational qualification requirements specified in amended Regulation 7(1)
  • Must hold graduate degree from recognized university plus NISM certificate, OR
  • Must hold CFA Charter plus NISM certificate, OR
  • Must complete NISM Post Graduate Program in Securities Market (Investment Advisory) or Financial Planning

For Non-Individual Investment Advisers:

  • Principal officers must meet qualification requirements
  • All persons engaged in providing investment advice must meet qualification standards

For Partnership Firms:

  • All partners must comply with qualification requirements

Documentation:

  • Update internal policies and procedures to reflect terminology changes
  • Maintain records of educational qualifications and certifications of all relevant personnel

Important Dates

  • November 25, 2025: Effective date of amendment (date of gazette publication)
  • Immediate Compliance: All investment advisers should ensure compliance with revised qualification requirements

Impact Assessment

Regulatory Impact:

  • Streamlines and simplifies regulatory language throughout Investment Advisers Regulations
  • Strengthens qualification framework for investment advisory personnel
  • Provides clarity on educational requirements from NISM and other recognized institutions

Market Impact:

  • Affects all registered investment advisers operating in Indian securities markets
  • May require some advisers to upgrade qualifications of their personnel
  • Enhances professional standards in investment advisory industry

Operational Impact:

  • Investment advisers must review and update internal documentation
  • HR and compliance teams need to verify qualifications of all relevant personnel
  • Training and onboarding processes may need updates to reflect new requirements

Investor Protection:

  • Strengthened qualification requirements improve quality of investment advice
  • Clearer terminology reduces ambiguity in regulatory framework
  • Enhanced professional standards benefit investor interests

Industry Standards:

  • Aligns with global best practices by recognizing CFA Charter
  • NISM programs gain enhanced prominence in qualification pathway
  • Removes sub-broker references, clarifying scope of investment advisory activities

Impact Justification

Major regulatory amendment affecting all registered investment advisers, modifying qualification requirements and terminology in SEBI Investment Advisers Regulations