In a Gazette Notification dated 16th March, 2021 the Securities and Exchange Board of India (“SEBI”) has issued the Securities and Exchange Board of India (Investment Advisers) (Second Amendment) Regulations, 2021 (“Amendment Regulations”) in order to further amend the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (“Principal Regulations”).
The Amendment Regulations have gained effect on the date of its publication in the Official Gazette i.e. 16th March, 2021.
For a detailed read of the amendment, please refer to the table provided below:
| Principal Regulations | Amendment Regulations | Implication |
| Regulation 7: Qualification and certification requirement
(1) An individual investment adviser or a principal officer of a non-individual investment adviser registered as an investment adviser under these regulations, shall have the following minimum qualification, at all times –
(a) A professional qualification or post-graduate degree or post graduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or a CFA Charter from the CFA Institute;
(b) An experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management;
(c) Persons associated with investment advice shall meet the following minimum qualifications, at all times – (i) a professional qualification as provided in clause (a) of sub-regulation (1) of regulation 7; and
(ii) an experience of at least two years in activities relating to advice in financial products or securities or fund or asset or portfolio management: Provided that investment advisers registered under these regulations as on the date of commencement of these regulations shall ensure that the individual investment adviser or principal officer of a non-individual investment adviser registered under these regulations and persons associated with investment advice comply with such qualification and experience requirements within three years: Provided further that the requirements at clauses (a) and (b) shall not apply to such existing individual investment advisers as may be specified by the Board. |
Regulation 7: Qualification and certification requirement
(1) An individual investment adviser or a principal officer of a non-individual investment adviser registered as an investment adviser under these regulations, shall have the following minimum qualification, at all times –
(a) A professional qualification or post-graduate degree or post graduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or a professional qualification by completing a Post Graduate Program in the Securities Market (Investment Advisory) from NISM of a duration not less than one year or a professional qualification by obtaining a CFA Charter from the CFA Institute.
(b) A An experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management;
(c) Persons associated with investment advice shall meet the following minimum qualifications, at all times – (i) a professional qualification as provided in clause (a) of sub-regulation (1) of regulation 7; and
(ii) an experience of at least two years in activities relating to advice in financial products or securities or fund or asset or portfolio management: Provided that investment advisers registered under these regulations as on the date of commencement of these regulations shall ensure that the individual investment adviser or principal officer of a non-individual investment adviser registered under these regulations and persons associated with investment advice comply with such qualification and experience requirements within three years: Provided further that the requirements at clauses (a) and (b) shall not apply to such existing individual investment advisers as may be specified by the Board. |
Through the present amendment the following option has also been included and will be considered as professional qualification for an individual investment adviser or a principal officer of a non-individual investment adviser registered as an investment adviser in addition to the ones already provided:
“A professional qualification by completing a Post Graduate Program in the Securities Market (Investment Advisory) from NISM of a duration not less than one year” |
Source: Securities and Exchange Board of India
