SEBI Introduces New Certification Requirements for Research Analysts

Ever feel like the rules in finance change just when you’ve finally figured them out? Well, SEBI’s at it again—this time with a fresh set of requirements for anyone working as a research analyst. If you’re in the business of giving investment advice or crunching numbers for clients, you’ll want to sit up and pay attention.

What’s the Deal with the New Certification Rules?

Let’s cut to the chase: Starting March 1, 2025, SEBI is making it mandatory for all research analysts to hold a valid NISM certification. And yes, that includes not just you, but your principal officers, employees, and even partners if you’re running a partnership.

You might be thinking, “Didn’t we already have something like this?” Good memory! But the old notification from 2015 is getting tossed out. The new rules are stricter, more detailed, and—let’s be honest—a bit more paperwork.

Here’s what you need to know:

You must clear the NISM-Series-XV: Research Analyst Certification Exam. No shortcuts, no exceptions.
Renewal is now a big deal. Before your certificate expires, you’ve got to pass the NISM-Series-XV-B: Research Analyst Certification (Renewal) Exam. Miss the deadline? You’re out of luck until you pass it again.
Everyone in the chain is covered. Whether you’re the boss, an employee, or a partner, these rules apply to you.

What’s Actually New This Time?

You might be surprised by some of these updates—SEBI’s not just shuffling papers here.

Deposit Requirements:

Depending on how many clients you have, you’ll need to keep a deposit with a scheduled bank. The amount ranges from ₹1 lakh (for up to 150 clients) to ₹10 lakh (for over 1,000 clients). This isn’t optional, and it’s got to be earmarked for the Research Analyst Administration and Supervisory Body (RAASB).

Grandfathering for Old Hands:

Already registered as a research analyst? You don’t have to meet the new educational requirements, but you do need to keep your NISM certificate current.

Client Segregation and Dual Registration:

If you’re wearing multiple hats (like being both an investment adviser and a research analyst), you’ll need to keep those roles—and their clients—separate. No more mixing research and distribution activities.

Stricter KYC, Fee Caps, and Disclosures:

Expect more paperwork. There are new Know Your Customer (KYC) standards, limits on what you can charge, clearer refund policies, and a requirement to spell out the Most Important Terms and Conditions (MITC) to your clients.

Regular Audits:

SEBI wants proof you’re following the rules, so compliance audits are now a thing. Miss a deadline or skip a step? That could mean trouble.

How Can You Stay Ahead?

Let’s be real: nobody likes scrambling at the last minute. Here’s how to make life easier:

Start your renewal early. Don’t wait until your certificate is about to expire.
Keep your documents organized. SEBI loves paperwork, and so should you (at least a little).
Check your client count. Make sure your deposit matches the number of clients you serve.
Stay on top of updates. SEBI and NISM change things often—don’t be the last to know.

Why Is SEBI Doing This?

At the end of the day, it’s about protecting investors and making sure only the best and most ethical analysts are guiding the market. Think of it as raising the bar for everyone.

Quick FAQ

What if I miss my renewal?

You can’t legally offer research services until you pass the renewal exam.

Do I need to meet the new education requirements if I’m already a registered analyst?

No, but you must keep your NISM certification valid.

How much do I need to deposit?

It depends on your client base—ranges from ₹1 lakh to ₹10 lakh.