SEBI Revises Qualification Requirements for Investment Advisers and PAIs

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SEBI investment adviser qualification norms

Notification F. No. SEBI/LAD-NRO/GN/2025/278, Dated 25.11.2025

1. Overview

The Securities and Exchange Board of India (SEBI) has notified amendments to the qualification provisions under the SEBI (Investment Advisers) Regulations, 2013, revising the minimum educational requirements applicable not only to Investment Advisers (IAs) but also to persons associated with investment advice (PAIAs).

These amendments replace the earlier finance-specific criteria and introduce a more flexible, structured qualification framework aligned with evolving market needs and competency standards.

2. Earlier Qualification Requirement (Now Substituted)

Under the earlier framework, an Investment Adviser or a person associated with investment advice was required to possess any one of the following:

  • A graduate or postgraduate degree in finance, accountancy, business management, commerce, economics, capital markets, banking, insurance or related areas, or
  • A Post Graduate Programme in Investment Advisory (PGP-IA) from NISM, or
  • A CFA Charter from the CFA Institute.

These conditions have now been fully replaced.

3. Revised Qualification Framework Under the Amended Regulations

The amended regulation introduces a broader and more standardised pathway for qualification. An IA or PAIA must now possess any one of the following:

3.1 Graduate or Equivalent Qualification + Relevant NISM Certification

A person holding any graduate degree or equivalent qualification, together with the relevant NISM certification specified for Investment Advisers.

This opens the profession to graduates across disciplines while ensuring minimum competency through NISM certification.

3.2 CFA Charter + Relevant NISM Certification

A CFA Charterholder is eligible to act as an IA or PAIA, subject to completing the relevant NISM certification prescribed by SEBI.

This ensures alignment between global financial qualifications and domestic regulatory competency standards.

3.3 NISM Post Graduate Programme in Investment Advisory or Financial Planning

Completion of either of the following NISM programmes independently qualifies an individual:

  • PGP in Investment Advisory (PGP-IA), or
  • PGP in Financial Planning

These programmes provide advanced, specialised training tailored to investment advisory functions.

4. Expanded Scope – Inclusion of Persons Associated With Investment Advice

SEBI has clarified that the revised qualification criteria apply not only to registered Investment Advisers but also to persons associated with investment advice, thereby strengthening overall competence across the advisory ecosystem.

This ensures that individuals directly interacting with clients or influencing advisory recommendations also meet uniform minimum standards.

5. Significance

The updated qualification norms are expected to:

  • Strengthen professional competency in the investment advisory industry,
  • Promote uniform skill standards across advisers and associated personnel,
  • Improve investor protection by ensuring advisors possess verified market knowledge,
  • Offer flexibility through multiple qualification pathways, and
  • Align domestic advisory standards with global certification frameworks.
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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied