SEBI Proposes Easing Educational Requirements for Investment Advisors and Research Analysts
Moneylife Digital Team 08 August 2025
Market regulator Securities and Exchange Board of India (SEBI) has proposed a set of regulatory changes aimed at widening access for professionals seeking to become investment advisors (IAs) and research analysts (RAs).
 
Under the draft framework, SEBI is considering allowing graduates from diverse academic backgrounds—including engineering and law—to register as IAs or RAs. This marks a shift from the current eligibility criteria, which are largely restricted to finance, business management, commerce, economics, and capital market qualifications.
 
While educational qualifications may be broadened, SEBI will continue to mandate certification through the National Institute of Securities Market (NISM) to ensure that all professionals meet a uniform standard of technical knowledge.
 
The consultation paper also proposes several operational reforms. Investment advisors and research analysts may be permitted to share their historical performance data, but only on a one-to-one basis and with appropriate disclaimers. To curb misleading performance claims, SEBI has suggested establishing a formal performance verification mechanism.
 
Another key proposal is to recognise external educational programmes as alternatives to NISM certifications, subject to certain conditions. A designated performance verification agency would manage legacy performance data prior to implementation of the new rules, enabling a structured transition to the updated regime.
 
These proposals reflect SEBI’s intent to expand the talent pool in the advisory and research space without compromising professional standards. By lowering entry barriers while retaining mandatory certification, the regulator aims to strike a balance between greater accessibility and investor protection.
Comments
vram2311
4 months ago
good initiative
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