Certification for persons associated with brokers now optional

Leading stock exchange BSE today said 'associated persons' handling basic clerical functions such as redressal of investor grievances and risk management activities for stock brokers do not have to mandatorily get certification to operate in the capital markets.
The decision was taken after brokers had expressed "practical difficulties" in meeting the requirements and are based-on consultations with market regulator Sebi and the nation's stock exchanges.
Currently, persons associated with a registered stock broker, who perform basic clerical functions were required to compulsorily get valid certification from the National Institute of Securities Market (NISM).
"In the light of the practical difficulties expressed by the members, in consultation with Sebi and other exchanges it has been decided that requirement of passing of NISM Series VII - Securities Operations and Risk Management Certification exam would be optional for associated persons handling the basic clerical/elementary functions...," BSE said in a circular today.

However, it added that the same would apply on condition that the work of such persons "is supervised by NISM Series VII -Securities Operations and Risk Management Certification certified personnel".
BSE has asked its trading members to take note of the decision and to ensure compliance by December 31, 2014.
The new norms would be applicable for persons associated with stock brokers/trading members/clearing members who deal with assets or funds of investors or clients, redressal of investor grievances, internal control or risk management and activities having a bearing on operational risk.
Under Sebi rules, the term "associated person" refers to a permanent or temporary employee of an entity operating in the Indian securities space.