However, clearing the NISM certification exam will be mandatory to ensure domain knowledge and professional preparedness, Sebi said in two separate notifications on Tuesday.
Currently, applicants are required to have a graduate or postgraduate degree in a finance-related field such as finance, business management, commerce, economics or capital markets to be eligible for enrollment.
Under the new framework, graduates from any discipline, including law and engineering, are eligible to become investment advisers and research analysts.
Applicants are required to possess “Bachelor’s Degree or any equivalent educational qualification from a University or Institution recognized by the Central Government or any State Government or CFA Charter from a recognized foreign University or Institution or Association or CFA Institute, and relevant certificate from NISM or any other institution or organization recognized by NISM”.
On easing the corporatization process for individual IAs, Sebi said that once an investment adviser has 300 clients or a fee of Rs. 3 crore, it should immediately notify the regulator and initiate the transition process.
The IA will then have three months to apply for in-principle approval and an additional three months to complete the conversion to a non-personal entity. During this transition period, IAs will be allowed to onboard new clients and continue charging fees, Sebi said.
Previously, an individual IA was required to complete the transition to a corporate structure within three months after crossing a prescribed client or fee threshold.
To this effect, the Securities and Exchange Board of India (SEBI) has revised the norms for investment advisers and research analysts. PTI
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