The Securities and Exchange Board of India (SEBI), through its July 23, 2025 circular, has provided much-needed clarity on who is required to obtain NISM certification under the Research Analyst (RA) Regulations.
This clarification is particularly important for Research Analysts, RA firms, and their sales, relationship, and support teams, especially in light of upcoming changes to the NISM Research Analyst syllabus and exam pattern.
SEBI’s Clarification: Who Needs NISM Certification?
As per the explanation to Regulation 2(ne) of the SEBI (Research Analyst) Regulations, all client-facing and public-facing persons are deemed to be persons associated with research services.
This includes (by whatever name called):
- Research Analysts
- Sales staff
- Client Relationship Managers
- Service Relationship Managers
- Any personnel interacting with clients in relation to research services
However, SEBI has clearly excluded purely clerical or administrative staff, provided:
- They have no client contact, and
- Their work has no connection with research services
Such non-client-facing administrative staff are not required to obtain NISM certification.
Mandatory Certification Timeline
SEBI has further clarified that:
- All persons associated with research services must obtain the relevant NISM certification
- The certification must be obtained within one year from the date of the circular, or
- Within any other timeline specified by SEBI from time to time
In simple words:
If you are client-facing and connected to research services → NISM certification is compulsory
Why Clearing the Exam Early Is a Smart Decision
This is where timing becomes critical. SEBI and NISM have already announced major changes in the Research Analyst examination structure, including:
- Updated syllabus
- Increased focus on case-study-based questions
- More practical and application-oriented testing
Once the new syllabus becomes fully effective, the exam will become:
- More time-consuming to prepare
- More conceptually intensive
- More challenging for working professionals and sales/support teams
Clearing the exam now means:
- Preparing under the existing (old) syllabus
- Faster completion with less complexity
- Avoiding uncertainty and last-minute pressure
- Ensuring full SEBI compliance well in advance
Who Should Act Immediately?
You should not delay if you are:
- Part of a Research Analyst firm
- In sales, business development, or client servicing for RA services
- A relationship manager explaining research reports to clients
- Planning to associate with an RA in the near future
Note that a lack of certification can lead to regulatory non-compliance, which may attract penalties or restrictions from SEBI.
Clear the Exam Faster with Sheetal Kunder Academy
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- Prepare as per the existing (old) syllabus
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