Monthly Archives June 2014

SEBI: analysts will need professional degree, NISM certificate

SEBI’s new standards for research analysts would require them to have a professional degree as well as a NISM or equivalent certification to ensure investors get the right financial advice.

The National Institute of Securities Markets (NISM) was established by the Securities and Exchange Board of India (SEBI) to conduct university programs and certification exams for financial education.

The new regulation would require that anyone wishing to register as a research analyst or anyone engaged in the preparation or publication of research analyzes and reports have certain minimum qualifications.

This would include a professional qualification, graduate degree or graduate degree in finance, accounting, business management, commerce, economics, capital market, services or financial markets. .

Such a diploma should come from a university recognized by the UGC (University Grants Commission) or by an equivalent institution.

Alternatively, the research analyst may have a professional degree or graduate degree from an institution accredited by the All Indian Council for Technical Education, the National Assessment and Accreditation Council or the National Board of Accreditation, or any other body. equivalent.

Graduate degree holders would need at least five years of experience in activities related to financial products, markets, securities, funds, asset or portfolio management.

In addition to the professional degree, the research analyst shall also have, at all times, a NISM certification exam for research analysts as specified by SEBI, or any other certification recognized by the regulatory board from time to time.

In the case of research analysts or research entities already engaged in the publication of research reports, the new regulations require that these persons obtain certification within two years from the date of entry into force of these. regulations.

The new standards have been approved by the SEBI Board of Directors and are in the process of being notified.

The SEBI last week approved detailed standards for “research analysts” to protect investors from manipulation by such entities and to bring greater transparency to their activities.

“In India, research analysts were unregulated. Now we have foreseen that all the people doing research reports will be regulated, there will be a requirement, registration with SEBI and after registration they will have certain disclosure requirements ”, said the president of SEBI UK Sinha after a SEBI board meeting on June 19.


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