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Responding to queries by Association of Portfolio Managers of India (APMI). SEBI has clarified that sales employees of non-individual distributors engaged in distribution of PMS will have to clear NISM exam.
SEBI said, “It is clarified that all the persons engaged or employed by the non-individual distributors for the purpose of distribution of Portfolio Management Services are required to obtain the NISM certification as specified in the notification dated September 7, 2021.”
Further, the market regulator has clarified that overseas distributors need not appear for NISM exam. However, they need to comply with the respective regulations of the country of residence.
In the letter, SEBI said, “It is advised that the requirement of NISM certification may not be insisted upon the overseas distributors. However, the overseas distributors shall be required to comply with the extant laws, rules and regulations of jurisdictions where they carry out their operations in the capacity of the distributors.”
