---
title: "SEBI Relaxes Certification Requirements for Non-Advisory Personnel of Investment Advisers"
date: 2026-07-20
author: "King Stubb & Kasiva"
url: https://ksandk.com/newsletter/sebi-certification-requirements-investment-advisers/
---

# SEBI Relaxes Certification Requirements for Non-Advisory Personnel of Investment Advisers

Posted On - 20 July, 2026 • By - King Stubb & Kasiva

As part of its continuing ease of doing business initiatives, SEBI has rationalised the certification framework applicable to **Persons Associated with Investment Advice (PAIA)** by introducing a differentiated compliance regime based on the nature of functions performed.

## Revised Certification Framework

### Non-Advisory Personnel

Under the revised framework, individuals engaged exclusively in sales and other non-core activities—such as relationship managers and client servicing personnel who do not render investment advice—will now be required to obtain only the newly introduced **NISM Series XXV-B** certification.

### Advisory Personnel

Personnel involved in providing investment advice will continue to be required to possess both the **NISM Series X-A (Level 1)** and **Series X-B (Level 2)** certifications prescribed under the SEBI (Investment Advisers) Regulations, 2013.

## Transitional Arrangements for Existing Certifications

SEBI has also clarified the transitional position for existing certified personnel. Individuals who already hold the existing Level 1 and Level 2 certifications will **not be required to immediately obtain the new certification** and may do so upon expiry of their current certifications.

## Effective Date and Next Steps

The circular takes **immediate effect**. The Investment Adviser Administration and Supervisory Body (IAASB) has been directed to amend its bye-laws and communicate the revised requirements to all registered Investment Advisers.

## Why It Matters

The revised framework adopts a more *functional* approach to competency requirements by distinguishing advisory personnel from employees performing purely commercial or client-facing roles.

Investment Advisers should take the following steps to ensure compliance with the revised regulatory framework while reducing unnecessary certification burdens for non-advisory staff:

- Review **employee classifications** to distinguish advisory from non-advisory roles
- Audit certification records against the new requirements
- Update training programmes to align with the differentiated regime

*Last Updated on 20 July, 2026*

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