As per existing regulations, persons associated with Research Services (PARS) are required to obtain certification from NISM as per Sebi (Research Analysts) Regulations, 2014. Earlier, it included clearing the NISM Series-XV: Research Analyst certification exam, which is designed directly for research professionals.
Sebi said it has now developed a new certification model that is particularly suitable for employees who interact with clients but are not directly engaged in preparing or producing research reports.
Going forward, PARS engaged in sales and other non-core services are required to obtain certification through the “NISM Series-XXV-A: Persons Associated with Research Services (Sales and Other Non-core Services) Certification Examination”.
The regulator clarified that employees who have already obtained NISM Series-XV certification need not take the fresh exam immediately. Instead, they will be required to obtain Series-XXV-A certification only after their existing Series-XV certificate expires.
At the same time, Sebi said that those directly involved in research activities are governed by the existing framework. These professionals will still be required to pass the NISM Series-XV Research Analyst Certification Exam, which remains mandatory for core research activities such as preparing investment proposals or research reports.
The new certification structure effectively creates two different qualifications: one for professionals directly engaged in research and one for staff managing client-facing roles related to research dissemination or support functions. Sebi said the reform aims to reduce unnecessary compliance burdens for employees who are not directly involved in research work while still maintaining regulatory oversight of research services.
“The reform is in line with the objective of ensuring ease of doing business and creating greater participation in research-related activities while maintaining investor interest,” the regulator said in its statement.
The move is expected to benefit brokerage firms, investment advisory businesses and research houses where sales teams, relationship managers and other client-facing staff often distribute or discuss research reports without being part of the research process itself.
