However, passing the NISM certification exam will remain mandatory to ensure domain knowledge and professional preparedness, Sebi said in two separate notifications on Tuesday.
Currently, applicants are required to hold a graduate or postgraduate degree in finance-related fields such as Finance, Business Management, Commerce, Economics, or Capital Markets to be eligible for registration.
Under the new framework, graduates from any discipline, including law and engineering, are eligible to become investment advisers and research analysts.
The applicants are required to have “a graduate degree or any equivalent educational qualification from a university or institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or CFA Charter from the CFA Institute, and relevant certification from NISM or from any other organisation or institution accredited by NISM”.
On easing the corporatisation process for individual IAs, Sebi said that once an investment adviser crosses the threshold of 300 clients or Rs 3 crore in fees, it should immediately notify the regulator and initiate the transition process.The IA would then have three months to apply for in-principle approval and an additional three months to complete the conversion to a non-individual entity. During this transition period, the IA would be allowed to onboard new clients and continue collecting fees, Sebi said.Earlier, an individual IA was required to complete the transition to a corporate structure within three months after crossing the prescribed client or fee limits.
To give these effects, the Securities and Exchange Board of India (Sebi) has amended norms for investment advisers and research analysts. PTI
