SEBI organises workshop for market participants on “Certification of Associated Persons in the Securities Markets”
Securities and Exchange Board of India organized a workshop for market participants on “Certification of Associated Persons in the Securities Markets”, in Mumbai today. Shri M. Damodaran, Chairman, SEBI, the Whole Time Members, SEBI and other senior SEBI officials interacted with market participants on the salient features of the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 which was notified in October 2007.
Certification has been mandated in a number of jurisdictions including the United States, the United Kingdom and Singapore. In India, certification has been mandated for distributors of Mutual Funds, traders in the derivatives segment and depository participants. The new regulations enlarge the scope of mandated certification to a number of new segments of intermediaries and their associated persons. All persons engaged in handling investors’ money, investors’ assets, investor complaints, dealing with operational risk, attending to compliance, and persons responsible for management of intermediaries will have to demonstrate minimum proficiency standards in order to maintain their registration with SEBI.
The certificate is to be obtained by passing an examination approved by SEBI. The certificate would be valid for three years. Subsequently, such persons would be required to complete an approved programme of Continuing Professional Education to maintain the validity of certificate. SEBI has also permitted grandfathering provisions in these regulations.
National Institute of Securities Markets (NISM) established by SEBI has been made responsible to coordinate the task of certification in Indian Securities Markets. NISM, in discussion with the market segments, would design the examinations and engage agencies to administer computer based multiple choice tests across the country. In addition, the NISM would put in place a comprehensive continuing professional education framework involving reputed institutions.
A significant development in this context would be the maintenance of complete data base of all market participants who have been certified by NISM. This is the first time that such a comprehensive database is being created.
SEBI’s new initiative is expected to result in the creation of a large pool of qualified workforce in the Indian Securities Industry and spur a set of new educational programmes catering to the market professionals over a period of time. This initiative is likely to result in a significantly enhanced market quality.
Mumbai
December 19, 2007
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