Sebi mulls overhaul of certification program for securities mkt professionals

Markets regulator Sebi has 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.