SEBI has introduced a new, lighter NISM Series XXV-B certification for sales and support staff at investment advisory firms. This move distinguishes non-core roles from primary advisory functions, aiming to reduce compliance costs for financial entities while maintaining strict standards for actual investment advice.
What Happened
The Securities and Exchange Board of India (SEBI) has released a new circular, effective June 24, 2026, aimed at simplifying certification requirements for staff at investment advisory firms. The regulator has launched a new examination, NISM Series XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services).
This new, lighter certification module is designed specifically for employees who perform sales, relationship management, and other support functions but are not directly involved in providing investment advice. This is a shift from previous rules that often required broad certification across the entire firm, regardless of the individual's specific daily tasks.
Why This Matters for Financial Firms
The move is part of SEBI’s ongoing “Ease of Doing Business” initiative. Previously, all personnel associated with investment advisory services were required to clear the NISM Series X-A and Series X-B certification examinations. These exams, while essential for those giving financial advice, were often considered too rigorous for staff members whose roles were limited to selling products or managing client relationships.
By creating a separate, specific path for non-core staff, SEBI is lowering the operational and compliance burden on advisory firms. This allows firms to streamline their hiring and training processes for support teams without compromising on the high standards required for those providing financial guidance to clients.
Core vs. Non-Core Roles
The circular clarifies the distinction between "core" and "non-core" roles. Individuals who provide actual investment advice—recommending specific stocks, asset allocation, or portfolio strategies—must continue to clear the mandatory NISM Series X-A (Level 1) and Series X-B (Level 2) examinations.
This ensures that investors remain protected, as those with the authority to influence investment decisions are still held to the highest competency standards. The new NISM Series XXV-B is exclusively for staff whose interaction with clients is limited to non-advisory activities, such as onboarding, general service support, and sales execution.
Impact on Existing Staff
For employees who already hold the existing NISM Level 1 and Level 2 certifications, there is no immediate need to switch. SEBI has clarified that these existing certifications will remain valid until their current expiry date. Once those certifications expire, staff members falling under the new non-core category will be expected to transition to the NISM Series XXV-B certification.
What Firms and Investors Should Track
Financial firms should immediately review their internal compliance frameworks to identify which employees fall under the new "non-core" definition. As companies implement these changes, investors can watch how this potentially reduces hiring costs and operational hurdles for advisory firms, which could, in the long run, improve the availability of trained support staff in the financial services sector.