SEBI Proposes Wider Definition of ‘Associated Persons’ in Securities Markets

Consultation Paper; Dated: 06.11.2025

1. Background

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing amendments to the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007. These regulations govern the certification requirements for individuals associated with intermediaries and entities operating in the securities markets.

2. Key Proposals in the Consultation Paper

2.1 Review or Expansion of ‘Associated Persons’

SEBI has proposed revisiting the definition of “Associated Persons” to include additional categories of individuals engaged in securities market activities. The objective is to ensure that all relevant personnel meet prescribed competency standards.

2.2 Manner of Obtaining Certificates

The paper outlines revised procedures for obtaining certification, which may involve:

• updated eligibility guidelines,
• streamlined application processes, and
• revised validity norms for certificates.

These measures aim to strengthen the skill and knowledge requirements for market participants.

2.3 Electronic Mode for Continuing Professional Education (CPE)

A major proposal is permitting online/electronic participation in CPE programs. This would offer greater flexibility and access, particularly for professionals across different locations, while maintaining quality standards.

3. Public Consultation

SEBI has invited comments from market intermediaries, professionals, investors, and the general public.

Last date for submitting comments – November 27, 2025

4. Objective of the Proposed Amendments

The amendments aim to:

• Enhance investor protection,
• Improve professional competency in the securities markets, and
• Enable wider and more efficient participation in mandatory certification processes.

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