Sebi makes certification mandatory for compliance officers

Market regulator Sebi today notified new guidelines for 'associated persons' working as compliance officers of market intermediaries such as brokers and credit rating agencies, making it compulsory for them 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.

In a notification in this regard, 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 today 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.

The term "associated person" refers to a permanent or temporary employee of an entity operating in the Indian securities space.

As per the regulator, these 'associated persons' have to obtain the certification from NISM by passing an "Securities Intermediaries Compliance (Non-Fund) Certification Examination (SICCE)".