On 23 July 2025, the Securities and Exchange Board of India issued a circular titled “FAQs related to Regulatory Provisions for Research Analysts”, introducing a significant compliance requirement for the research ecosystem.
SEBI has mandated that Persons Associated with Research Services (PARS) must obtain a relevant NISM certification within one year from the date of the circular.
The compliance deadline is 23 July 2026.
This requirement flows from the framework under the SEBI (Research Analysts) Regulations, 2014, which obligates intermediaries to ensure that individuals associated with research activities meet prescribed qualification and certification standards.
Introduction of NISM-Series-XXV-A Certification
Following SEBI’s circular, the National Institute of Securities Markets (NISM) has developed a new certification examination titled:
NISM-Series-XXV-A: Persons Associated with Research Services (Sales and Other Non-Core Services) Certification Examination
This examination will be effective from 10 February 2026.
The objective of this certification is to establish a minimum knowledge benchmark for individuals associated with research services, particularly those performing sales and other non-core functions, as defined under the Research Analysts Regulations.
Who is Covered?
The certification is specifically intended for individuals who are connected with research services but are not engaged in core research activities such as drafting or issuing research reports. This may include:
• Sales personnel distributing research reports
• Marketing teams promoting research products
• Relationship managers communicating research outputs
• Operations or support staff associated with research dissemination
Research Analyst entities must carefully identify employees who fall within the definition of “Persons Associated with Research Services” and ensure timely certification.
Examination Structure
The examination has been designed to enhance accessibility and operational ease. Key features include:
• Content delivered through video-based e-learning mode
• Internet-based examination format
• Duration of 60 minutes
• Remotely proctored environment
• No requirement to visit a physical test centre
This reflects a shift towards technology-enabled regulatory compliance.
Regulatory Implications
Under the SEBI (Research Analysts) Regulations, 2014 read with the SEBI Act, 1992, non-compliance with qualification and certification requirements can attract regulatory action, including:
• Observations during inspection
• Directions for rectification
• Monetary penalties
• Suspension or restriction of activities
Given the one-year transition window, firms should initiate internal compliance mapping immediately rather than deferring action closer to the deadline.
Related Update: eCPE for AIF Managers
NISM has also introduced eCPE requirements in relation to the NISM-Series-XIX-C: Alternative Investment Fund Managers Certification Examination.
Entities operating under AIF structures should review their certification validity and continuous professional education obligations to avoid lapses.
Recommended Action Plan for Research Analyst Entities
Research Analyst firms, brokers with research desks, fintech platforms distributing research, and investment advisory entities with research verticals should:
• Identify all personnel falling within the PARS definition
• Conduct role-based applicability analysis
• Create a certification tracking mechanism
• Plan staggered certification completion before July 2026
• Update HR, compliance manuals, and internal SOPs
Proactive compliance not only mitigates regulatory exposure but also strengthens governance credibility.
How KP Regtech Can Assist
KP Regtech provides structured support for:
• Applicability assessment under Research Analyst Regulations
• Gap analysis and compliance mapping
• Certification planning strategy
• Policy and SOP updates
• SEBI inspection preparedness
• Regulatory advisory and documentation support
With regulatory expectations tightening across intermediaries, early compliance planning is essential.
Organisations engaged in research services should treat this certification requirement as a priority item in their 2025–2026 compliance calendar.