Description

SEBI introduces a lighter NISM Series-XXV-A certification for Persons Associated with Research Services (PARS) engaged in sales and other non-core services, easing compliance requirements for non-research staff.

Summary

SEBI has introduced a lighter NISM certification module — NISM Series-XXV-A — specifically for Persons Associated with Research Services (PARS) who perform sales and other non-core services (e.g., sales staff, relationship managers). This replaces the requirement for such personnel to pass the more rigorous NISM Series-XV: Research Analyst Certification Examination, aligning with SEBI’s ease of doing business objectives.

Key Points

  • A new certification — NISM Series-XXV-A: Persons Associated with Research Services (Sales and Other Non-Core Services) Certification Examination — has been created for PARS in sales and non-core roles.
  • PARS who have already obtained NISM Series-XV certification are not required to immediately switch to NISM Series-XXV-A; they must obtain it only after the expiry of their existing Series-XV certification.
  • PARS performing core research functions must continue to obtain NISM Series-XV: Research Analyst Certification Examination.
  • This reform is issued under PR No. 16/2026.

Regulatory Changes

  • Under Regulation 7 of SEBI (Research Analysts) Regulations, 2014, all PARS were previously required to obtain the NISM Series-XV certification.
  • A Gazette Notification dated February 14, 2025, under the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 had mandated NISM Series-XV for all PARS.
  • The new circular bifurcates the certification requirement: NISM Series-XXV-A for sales/non-core PARS and NISM Series-XV for core research PARS.

Compliance Requirements

  • Sales staff, relationship managers, and other non-core PARS with client contact but not directly involved in research: must obtain NISM Series-XXV-A certification going forward.
  • PARS already holding NISM Series-XV: no immediate action required; must transition to NISM Series-XXV-A upon expiry of their Series-XV certification.
  • Core research PARS: continue to obtain NISM Series-XV certification as before.

Important Dates

  • March 11, 2026: Circular issued from Mumbai.
  • February 14, 2025: Earlier Gazette Notification mandating NISM Series-XV for all PARS.
  • Transition deadline for existing Series-XV holders: upon expiry of their current NISM Series-XV certification validity.

Impact Assessment

This is a compliance-easing measure primarily affecting research analyst firms and intermediaries employing sales or relationship management staff who interact with clients but are not directly involved in research. By introducing a lighter certification module, SEBI reduces the compliance burden on non-core personnel, potentially lowering barriers to entry and operational costs for research analyst entities. There is no direct impact on listed stocks or broader market operations. The reform supports SEBI’s ongoing ’ease of doing business’ agenda and could encourage greater participation in research-related activities.

Impact Justification

Affects research analyst firms and their sales/non-core staff certification requirements, but is a compliance easing measure rather than a restrictive change. No direct market-wide or stock-specific impact.