SEBI Eases Entry for Investment Advisers and Research Analysts: Graduates from Any Stream Now Eligible
The Securities and Exchange Board of India (SEBI) has announced a significant relaxation in the educational qualification criteria for registering as an Investment Adviser (IA) and Research Analyst (RA). This move opens up the financial advisory and research fields to a broader talent pool, allowing graduates from any academic discipline to apply.
The Key Regulatory Changes
1. End of Finance-Specific Degree Mandate
Old Rule: Applicants were previously required to hold a graduate or postgraduate degree specifically in finance-related disciplines (e.g., finance, business management, commerce, economics, or capital markets).
New Rule: Graduates from any discipline, including law, engineering, arts, and science, are now eligible to apply for IA and RA registration.
2. NISM Certification Remains Mandatory
To ensure that all applicants possess the necessary technical expertise and domain knowledge despite the relaxed degree requirement, passing the relevant National Institute of Securities Markets (NISM) certification exam will remain mandatory for all applicants.
This shift reflects a regulatory recognition that practical, verifiable domain knowledge (tested via NISM) is more crucial than a specific academic background.
Easing the Corporatisation Path for Individual IAs
SEBI also simplified the process for individual investment advisers to transition into a corporate entity, known as “corporatization.”
Trigger for Transition: An individual IA must now initiate the transition process to a non-individual entity immediately upon crossing specific thresholds:
Reaching 300 clients; OR
Earning ₹3 crore in fees.
Procedure: Once either threshold is crossed, the IA must immediately notify the regulator and begin the formal transition process to ensure their operations are scaled under a more robust corporate structure, providing greater protection and oversight.
These changes collectively aim to professionalize the advisory space by attracting diverse talent while ensuring strong regulatory preparedness and client safety.
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