SEBI makes certification compulsory for compliance officers

SEBI said that the market intermediaries would need to ensure the necessary certification for their existing compliance officers within two years

Market regulator SEBI (Securities and Exchange Board of India) on Monday notified new guidelines for ‘associated persons’ working as compliance officers of market intermediaries such as brokers and credit rating agencies. The term “associated person” refers to a permanent or temporary employee of an entity operating in the Indian securities space. The associated persons functioning as compliance officers of intermediaries registered with the Board as stock brokers, or depository participants, or merchant bankers, or underwriters, or bankers to the Issue, or debenture trustees or credit rating agencies, shall obtain certification from the National Institute of Securities Markets by passing the NISM-Series-III A: Securities Intermediaries Compliance (Non-Fund) Certification Examination (SICCE), SEBI said in a notification on Monday. The regulator has made it compulsory for associated persons to get requisite certifications to operate in the stock markets. The compliance officers would need to get certification from the National Institute of Securities Markets (NISM) after passing the relevant examinations. SEBI said that the market intermediaries would need to ensure the necessary certification for their existing compliance officers within two years, while those being engaged or employed after 11 March 2013 would have to obtain the certification within one year. The market entities to whom this notification would apply include brokers, depository participants, merchant bankers, underwriters, bankers to issue, debenture trustees and credit rating agencies. AARTI PGDM 2nd SEM