SEBI Notifies Multiple Amendments to ‘Certification Of Associated Persons In The Securities Markets Regulations, 2025’

The Securities and Exchange Board of India (SEBI) has issued a notification introducing significant amendments to the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 by means of the newly introduced Certification of Associated Persons in the Securities Markets (Amendment) Regulations, 2025.

These core objectives of the 2025 regulations are to clarify and streamline the regulatory framework concerning the certification requirements for associated persons operating within the securities markets.

‘The Certification of Associated Persons in the Securities Markets Regulations’ are intended to ensure that individuals engaged by intermediaries in the securities markets possess the requisite knowledge and qualifications to protect investor interests and maintain market integrity.

The intent behind the latest amendment is to solidify the eligibility criteria and timelines for such certifications to allied firms, and to update regulatory language for clarity and adaptability.

Sub-regulation (1) of regulation 3, has been amended to empower SEBI to specify the categories of associated persons required to obtain certification for employment or engagement with various classes of intermediaries, within such time as may be specified by the Board.

The amended text reads, “The Board may specify such categories of associated persons to obtain the requisite certificate for engagement or employment with such classes of intermediaries, and within such time as may be specified by the Board.” Furthermore, the proviso to sub-regulation (1) confirms that any notifications previously issued by SEBI under this provision will remain in force until they are expressly rescinded.

Sub-regulation (2) of regulation 3 has been entirely omitted. As a result of this omission, sub-regulation (4) has also been updated: sub-regulation (4) previously referred to the issuance of notifications under sub-regulations (1) and (2), but now applies only to sub-regulation (1).

The relevant words have been substituted so that the clause now reads “purposes of sub-regulation (1) may” instead of “purpose of issuing notification under sub regulations (1) and (2) shall”.

Further, in regulation 4, sub-regulation (3), the words “specified in the notification issued” have been replaced with “as may be specified by the Board”, further reaffirming SEBI’s authority to make such specifications.

Regulation 6 has been completely substituted, now providing that no associated person engaged in activities specified in clauses (a) to (f) of sub-regulation (4) of regulation 3 may continue such engagement unless holding a valid certificate as specified by the Board under sub-regulation (1) of regulation 3.

The regulatory amendments are tantamount to defining certification norms and timelines, streamlining regulatory references, and reinforcing compliance requirements for associated persons in the securities markets.

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