SEBI Relaxes Education Criteria for Investment Advisers and Research Analysts

In a significant move to broaden participation in India’s capital markets, the Securities and Exchange Board of India (SEBI) has relaxed the educational qualification norms for individuals aspiring to become Investment Advisers (IAs) and Research Analysts (RAs). As per the revised norms notified on 26 November 2025, graduates from any academic discipline can now apply for registration as IAs or RAs, provided they meet certain professional certification standards.

What Has Changed?

Previous Requirement

Until now, only individuals with a graduate or postgraduate degree in finance-related fields—such as,

• Finance
• Business Management
• Commerce
• Economics
• Capital Markets

…were eligible to register as investment advisers or research analysts.

New Eligibility Norm

Under SEBI’s updated rules, candidates now only need to have,

• A graduate degree in any discipline from a recognized institution (Indian or foreign)
• Or a CFA Charter from the CFA Institute
• In addition, applicants must clear the relevant certification from the National Institute of Securities Markets (NISM) or any other institution accredited by NISM.

This move is expected to diversify the talent pool entering the financial advisory and research domain by opening doors for professionals from law, engineering, humanities, and other non-financial backgrounds.

Changes to Corporatisation Rules for Individual Investment Advisers

SEBI also introduced new flexibility in the corporatisation timeline for individual investment advisers who scale their operations.

Key Updates,

• If an IA crosses 300 clients or ₹3 crore in total fees, they must notify SEBI immediately.

The IA will get,

• 3 months to apply for in-principle approval for corporatisation
• An additional 3 months to complete conversion into a non-individual (corporate) entity
• During this transition period, the IA can continue to onboard clients and collect fees, which was not permitted under earlier rules that demanded conversion within 3 months.
• This step ensures a smoother business transition and prevents disruption to client services.

Static Facts

• Authority: Securities and Exchange Board of India (SEBI)
• Notification Date: 26 November 2025
• New Education Rule: Any graduate (from any stream) + NISM certification
• Old Rule: Degree in finance-related discipline mandatory
• CFA Charter: Accepted as alternate qualification
• Relevant Certification: NISM or institution accredited by NISM