The Securities and Exchange Board of India (SEBI) issued a circular dated 11 March 2026 relaxing certification requirements for personnel employed in research services entities who are not directly engaged in research activities. Under the revised framework, support staff not involved in core research functions are exempt from the NISM Series-XV Research Analyst certification and may instead obtain the simplified NISM Series-XXV-A certification.
Background
The SEBI (Research Analysts) Regulations, 2014 establish a regulatory framework for individuals and entities providing research services in the securities market. A key compliance requirement under these regulations is the mandatory certification of research personnel through examinations administered by the National Institute of Securities Markets (NISM).
The NISM Series-XV Research Analyst Examination is a comprehensive assessment covering equity research methodology, valuation techniques, financial modelling, regulatory requirements, and ethical standards. While this level of certification is appropriate for professionals engaged in producing investment research, market participants had flagged that requiring the same certification for administrative, operational, and support staff within research entities imposed a disproportionate compliance burden.
SEBI's move to introduce a tiered certification structure reflects the regulator's broader ease-of-doing-business initiative, which has seen several compliance rationalisation measures across different segments of the securities market in recent months.
Key Provisions
The circular establishes a differentiated certification framework:
Exemption for non-core staff: Personnel employed in research services entities who are not directly involved in preparing, reviewing, or disseminating research reports are exempt from the NISM Series-XV Research Analyst Examination.
Simplified alternative: Such personnel may instead obtain the NISM Series-XXV-A certification, which focuses on basic regulatory awareness, market conduct standards, and investor protection principles. This represents a substantially lower knowledge threshold than the full Series-XV examination.
Core professionals unaffected: Research analysts, lead analysts, and others directly engaged in producing research content continue to be required to hold the NISM Series-XV certification. The relaxation applies only to support, administrative, and operational staff.
Investor protection focus: The Series-XXV-A certification ensures that even non-core staff maintain a baseline understanding of regulatory requirements and ethical standards, particularly as they relate to handling confidential information and avoiding conflicts of interest.
Ease of business rationale: SEBI has framed the circular as part of its ongoing effort to reduce compliance costs for market intermediaries without compromising the quality of research services or investor protection standards.
Implications for Practitioners
Research entities and compliance officers should conduct an immediate review of their staff roster to identify personnel who qualify for the relaxed certification pathway. Employees currently preparing for the Series-XV examination who fall within the support staff category may redirect their efforts to the less demanding Series-XXV-A assessment.
Compliance teams should note that the distinction between "core research" and "support" personnel must be clearly documented. SEBI inspections and audits will likely examine whether entities have correctly classified their staff, and misclassification to avoid the full certification requirement could attract regulatory scrutiny.
For NISM and certification training providers, the introduction of a tiered structure may affect enrolment patterns for the Series-XV examination. Firms should update their internal training calendars and budget allocations to reflect the revised requirements.