SEBI has asked investment advisers and their associated persons like partners and representatives to obtain the NISM Investment Adviser (Level 2) i.e. NISM Series-X-B. Now, both NISM certifications – Investment Adviser level 1 and Investment Adviser level 2, are mandatory to carry out investment advisory practice in India.
However, SEBI has exempted CFP certified investment advisers and associated persons from passing such examinations. The regulator also clarified that the person who is going to complete his/her CFP before February 27, 2014 has been exempted from passing Investment adviser level 1 and investment adviser level 2.
In a circular, SEBI said, “Notwithstanding anything contained in this notification, such associated person, may, in alternative, also obtain certification from organizations and institutions accredited by NISM, for purpose of sub-regulation (2) of regulation 7 of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.”
