FYI: SEBI Introduces Major Reforms for Investment Advisers and Research Analysts
Related gazette notification:
Unfortunately, the notification is in the form of amendments and is not an easy to understand consolidated version.
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Key points:
- Entry requirements have been relaxed. Graduates from any field can apply.
- A new concept of part-time professional has been introduced.
- Usage of AI tools must be clearly communicated.
- Instead of stringent networth requirements, a deposit system has been introduced. The deposit amount varies on the number of clients.
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This is where I am also confused. Their circular is not very clear it still says you need a degree in the financial field while the article is saying anyone even lawyer and doctors can become a RA.
They fall is the category of professional degree, which is permitted as a qualification in the regulation to become an RA.
Hey, I wanted to know if NISM certification course is necessary to become a RA or IA? OR just the NISM examination is enough to get SEBI registered? Please if someone can help me with the process. Thank you!
Passing the NISM Exam (certification) is mandatory.
NISM Course (the 1 year program) is one of the many ways to meet the educational requirements to be an RA. Please go thru the SEBI regulations to get a better understanding.
Please note that on becoming a RA you will have to give up any other business or employment !!
You will have to give an Undertaking that upon receiving approval of Research Analyst Licence, the Research Analyst shall resign from any other employment or business, if any, and shall engage in research analyst activities only…
Also you cannot advise clients on investments - that you can do as a IA not RA.
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Hey: Above seems to be a misunderstanding. There is a provision of “part-time research analysts”. Regulation states: “A declaration that it shall maintain arm-length relationship between its business activity as research analyst and other business activity and shall ensure that its business activities as research analyst are clearly segregated from its other business activity or employment.”
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So now with the latest amendment, someone who is working in IT industry since 12 years and have a degree in BCA and MTech can still go ahead with an RA license or still we need short/long term/part time finance related degree?
This is how I understand the regulation:
Must Have 1, 2, and 3:
- Graduate from any stream
- Professional qualification or graduate or PG (degree/diploma) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance, actuarial science, Securities Market (Research Analysis), or other financial services.
- NISM Certification
To answer your Q, IT/Engineering stream is not accepted in my personal opinion as it’s not listed explicitly in the provided long list. Would love to be proven otherwise.
Source: Snippet from the latest regulation
So, it seems we’re stuck with this situation. 
Do you have any insights on the short-term courses (4 months) offered by Imarticus Learning?
Specifically, I’m curious if they provide value or could act as a solution to overcome the roadblocks caused by these amendment clauses.
Regulation specifically asks for duration not less than 1 year. And, course must be approved by a competent authority. Please read the details and take a call.
Even i had the understanding about arms length relationship with other businesses. SEBI even asks for declarations and processes to ensure this.
but if they are asking for this undertaking then it means that RA has to stop other businesses.
And this has come from SEBI to a person known to me only few days back. So i understand that this is their stance and RAs have to assume that they cant do anything else.
I would advise all people wanted to register as RA to consider this aspect before wasting time in taking NISM exam.
But then I read it somewhere that PG is not required,right? Please help me clarify this!
Yes, if graduation is from subjects mentioned in the regulation.
As per the new regulations in Dec 2024, part time RAs can pursue other businesses / employment. i think most people will have to apply for this.
Hello Sir,
I am considering the NISM Certification – specifically, the Post Graduate Program in the Securities Market (Research Analysis) from the National Institute of Securities Markets (NISM), which has a duration of not less than one year.
Would this program fulfill the SEBI educational qualification criteria for Research Analysts, given that I do not hold an undergraduate or postgraduate degree in finance?
Yes, even I have applied. However still waiting for their call for Admission interview.
Pl refer to the new regulations. You are referring to the the wrong document.