SEBI proposes to broaden the scope of CAPSM Regulations

SEBI has issued a consultation paper proposing amendments to the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007, with the aim of updating eligibility criteria and widening the scope of certification and continuing professional education requirements across the securities market ecosystem.

𝐊𝐞𝐲 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐝 𝐂𝐡𝐚𝐧𝐠𝐞𝐬:

1. 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 “𝐀𝐬𝐬𝐨𝐜𝐢𝐚𝐭𝐞𝐝 𝐏𝐞𝐫𝐬𝐨𝐧𝐬”: The scope is proposed to be broadened to cover individuals engaged or intending to be engaged in the securities markets, including those employed with regulated entities, and employees of foreign portfolio investors and foreign venture capital investors working in India.

2. 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐋𝐨𝐧𝐠-𝐓𝐞𝐫𝐦 𝐍𝐈𝐒𝐌 𝐂𝐨𝐮𝐫𝐬𝐞𝐬 𝐚𝐬 𝐚 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐑𝐨𝐮𝐭𝐞: SEBI proposes to recognise long-duration National Institute of Securities Markets (NISM) courses (three months or more), offered in physical, online, or hybrid mode, as an additional pathway to obtain certification, alongside existing examination-based and CPE-based routes.

3. 𝐄𝐥𝐞𝐜𝐭𝐫𝐨𝐧𝐢𝐜 𝐌𝐨𝐝𝐞 𝐟𝐨𝐫 𝐂𝐏𝐄 𝐏𝐫𝐨𝐠𝐫𝐚𝐦𝐬: Continuing Professional Education (CPE) programs may be conducted in physical or electronic mode, enhancing flexibility in how certifications are renewed.

4. 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐄𝐱𝐞𝐦𝐩𝐭𝐢𝐨𝐧 𝐂𝐫𝐢𝐭𝐞𝐫𝐢𝐚: The existing exemptions based on the category of “Principal”, age (50+), and 10+ years of experience are proposed to be replaced with a combined requirement of minimum 50 years of age and at least 10 years of relevant securities market experience as on the date of examination/CPE.

The proposals signal a shift towards a more standardised and capability-focused certification regime. Broadening the definition of “Associated Persons” may widen the compliance perimeter, while recognising long-term NISM courses places greater emphasis on structured learning over one-time exams.

Public Comments on the consultation paper are invited until November 27, 2025.

Copy of the Consultation Paper is attached.

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