SEBI Certification Amendment Regulations 2026: New Rules for Specified Persons

The Securities and Exchange Board of India (SEBI) has changed certain rules relating to professional certification in the securities market. Under the SEBI Certification Amendment Regulations 2026, the regulator has introduced a new definition of "Specified Persons", added another way to obtain certification through the National Institute of Securities Markets (NISM), and revised the provisions dealing with certificate validity and renewal.

The amendment was notified on 7 October 2026 and published in the Official Gazette on 8 October 2026. It came into force on the date of publication.

These changes are relevant to individuals working in securities market businesses, including principals and employees of intermediaries, agents, distributors and certain employees of foreign investment entities working in India.

There are some issues that will arise for the intermediaries in the securities market due to this amendment. What employees will be covered under the new definition? Do all of them require new NISM certification? Will existing certificates be valid for a longer period?

The notification answers some of these questions directly, while others depend on the existing SEBI regulations and further specifications issued by SEBI or NISM.

Businesses should therefore understand what has changed before revising their certification policies or making decisions about employee training.

SEBI Certification Amendment Regulations 2026: Notification at a Glance

SEBI introduced the amendment through Notification No. SEBI/LAD-DOP/2026/319. It makes changes to the certification regulations originally introduced in 2007.

The notification changes selected provisions of the existing certification framework. It does not replace the entire 2007 regulations or introduce a separate certification system for every person working in the financial sector.

What Is the Regulatory Framework for Securities Market Certification in India?

Individuals performing certain functions in the securities market are required to hold appropriate professional certifications. These requirements help establish that persons carrying out regulated activities have the relevant knowledge and competency.

SEBI determines the categories of persons for whom certification is necessary. NISM plays a central role in conducting or facilitating the certification and professional education arrangements provided under the regulations.

SEBI's Role in Professional Certification

SEBI regulates India's securities market and supervises registered intermediaries.

Its responsibilities include prescribing requirements for persons carrying out activities that may affect investors, clients, market operations and regulatory compliance.

Under Regulation 3 of the certification regulations, SEBI may specify the categories of persons who must obtain certification and the relevant time limits.

The requirement is linked to the nature of the work and the applicable regulatory notification.

This distinction matters because holding a position in a securities-related organisation does not automatically mean that every employee must obtain the same NISM certificate.

What Are the SEBI Certification Regulations, 2007?

The SEBI Certification Regulations, 2007, provide the legal framework for determining certification obligations and the methods through which relevant certificates can be obtained.

They cover matters such as:

• Certification applicability: Identifying the categories of persons required to hold certification.
• Certification methods: Establishing permitted routes for obtaining relevant certificates.
• Professional competency: Providing for examinations, classroom-based routes and other recognised methods.
• Certificate validity: Determining how long certification remains valid.
• Revalidation: Setting out the relevant requirements for maintaining certification.
• Intermediary obligations: Addressing compliance responsibilities where applicable.

The October 2026 amendment makes changes within this framework.

It should also be read alongside the amendments introduced in July 2025, which revised important provisions of Regulation 3 and Regulation 6.

What Is the Role of NISM?

The National Institute of Securities Markets is an institution established by SEBI to support education, professional development and certification in the securities market.

NISM provides certification examinations and Continuing Professional Education programmes for relevant market professionals.

Its certification activities cover different areas of securities market operations, subject to the requirements prescribed for particular functions.

The new amendment adds another permitted certification route involving a course or programme specified by NISM in consultation with SEBI.

However, the availability of a particular NISM course does not automatically make it a recognised route for every certification category.

What Has Changed Under the SEBI Certification Amendment Regulations, 2026?

The latest amendment changes how certain securities market professionals are described under the regulations and how certification may be obtained or maintained.

The main changes are explained below.

1. The Term Associated Persons Has Been Replaced

SEBI has replaced the term "Associated Persons" with "Specified Persons" throughout the relevant certification regulations, with an exception for the proviso to Regulation 3(1).

This also changes the title of the regulations.

The amendment introduces a revised definition under Regulation 2(1)(m), allowing the certification framework to use the new terminology.

2. A New Definition of Specified Person Has Been Introduced

The amendment removes the earlier definition under Regulation 2(1)(c) and inserts the definition of Specified Person under Regulation 2(1)(m).

The definition covers principals and employees of intermediaries, agents, distributors and other individuals engaged in securities market business.

It also expressly includes employees of foreign portfolio investors and foreign venture capital investors working in India.

3. Another NISM Certification Pathway Has Been Added

A new clause (d) has been introduced under Regulation 4(1).

It allows certification through successful completion of a course or programme specified by NISM in consultation with SEBI.

This is an additional pathway within the existing certification framework.

4. Changes Have Been Made to Certification Eligibility Provisions

Regulations 4(2), 4(3) and 4(4) have been amended to accommodate the newly introduced course or programme route.

Regulation 4(3) also changes the wording concerning the relevant date for examination, CPE or enrolment in a specified programme.

5. SEBI Can Specify an Extended Certificate Validity Period

The amended Regulation 5 allows a certificate to remain valid for three years or another extended period specified by SEBI.

This does not automatically extend the validity of every certificate.

6. Related Regulations Have Also Been Updated

The notification introduces Regulation 12 and a Schedule containing amendments to selected provisions of the Debenture Trustees Regulations, 1993, and Self-Regulatory Organizations Regulations, 2004.

These amendments mainly align terminology with the revised certification regulations.

Who Are Specified Persons Under the SEBI Amendment Regulations, 2026?

The new definition of Specified Person is one of the most important parts of the amendment.

According to Regulation 2(1)(m), the term covers a principal or employee of an intermediary, an agent, distributor or another natural person engaged in securities market business.

It also includes employees of foreign portfolio investors and foreign venture capital investors working in India.

The definition identifies the relevant categories of individuals. Whether someone must obtain a particular certificate depends on the applicable certification requirements.

Principals of Securities Market Intermediaries

A principal is a person involved in managing an intermediary's securities business.

The underlying regulations describe principals with reference to management activities, including supervision, solicitation and conduct of business. They also identify categories such as sole proprietors, managing partners and whole-time directors.

Where a principal performs a function covered by a SEBI certification requirement, the relevant certification provisions must be examined.

Employees Working in Securities Market Activities

Employees of intermediaries are included within the definition.

However, this does not mean that every employee working in the same organisation has identical certification obligations.

The individual's duties and the certification category specified by SEBI are important.

For example, functions relating to investment advice, securities operations, investor servicing or compliance may be subject to different regulatory requirements.

The appropriate certification should be determined from the applicable regulations and official notifications.

Agents and Distributors

The definition also covers agents and distributors engaged in securities market business.

Such individuals may be involved in the sale or distribution of securities or other relevant regulated activities.

Their certification requirements must be assessed with reference to the actual activity performed.

The fact that a person is called an agent or distributor is not, by itself, enough to identify the exact certificate required.

Employees of Foreign Portfolio Investors

The amendment explicitly mentions the employees of foreign portfolio investors in India.

This is important to consider while examining the extent of certification of individuals related to foreign portfolio investments.

Organisations should distinguish between persons covered by the definition and those for whom SEBI has prescribed a specific certification requirement.

Employees of Foreign Venture Capital Investors

Employees of foreign venture capital investors working in India are also expressly included.

Their certification position must similarly be assessed against the relevant requirements.

Applicability of the Revised Definition

Important: The revised definition should not be confused with a new blanket certification requirement for all people in these categories.

Associated Persons vs Specified Persons: What Is the Difference?

The earlier regulations used the expression, Associated Persons. The October 2026 amendment replaces it with Specified Persons and introduces a new definition.

The earlier definition referred to principals, employees, agents, distributors and other natural persons engaged in the securities business.

It also referred to employees of foreign institutional investors or foreign venture capital investors working in India.

The revised definition expressly refers to foreign portfolio investors.

This is a relevant terminology update, particularly because the regulatory framework for foreign portfolio investment has changed over time.

Old vs New SEBI Certification Regulations

The practical change for businesses is not limited to replacing words in an internal policy.

Intermediaries should examine the revised definition and determine whether existing compliance records and role classifications remain accurate.

At the same time, the notification should not be interpreted as automatically cancelling existing certificates merely because the terminology has changed.

What Are the New NISM Certification Requirements Under SEBI Rules?

Regulation 4 explains the permitted methods of obtaining certification.

Before the 2026 amendment, Regulation 4(1) recognised three routes, subject to the applicable conditions.

The amendment introduces a fourth route.

Existing Certification Methods

The earlier framework provided for certification through the following methods:

1. Certification examination

A person could obtain certification by passing an examination conducted through an organisation or self-regulatory organisation approved or engaged as specified by NISM.

The relevant examination depends on the certification requirement applicable to the person.

2. Classroom credits

The regulations also recognised obtaining the prescribed number of classroom credits through classes on subjects specified by NISM.

This was not an unrestricted option for every person. The relevant conditions in Regulation 4 continued to apply.

3. Conducting formal classroom sessions

Another recognised route involved delivering the prescribed number of formal classroom sessions in relevant Continuing Professional Education programmes.

This route was also subject to the applicable regulatory conditions.

New Course or Programme-Based Certification

The newly inserted Regulation 4(1)(d) permits certification by passing a course or programme specified by NISM in consultation with SEBI.

The wording is important for two reasons.

First, the course or programme must be specified by NISM in consultation with SEBI.

Second, the person must satisfy the relevant certification conditions applicable to their category.

The amendment does not state that any training course, workshop or professional programme can be treated as an approved substitute for certification.

It also does not provide a new universal course fee, examination structure or programme duration.

Does the New Pathway Replace NISM Examinations?

No. The amendment adds clause (d) to the existing Regulation 4(1).

The earlier methods remain part of the framework, subject to the regulations.

The introduction of another permitted route does not mean that every certified professional can choose any method without checking the relevant conditions.

What Should Businesses Check Before Selecting a Certification Pathway?

Organisations should examine:

The employee's role and applicable certification category.

The certification requirement specified by SEBI.

The methods available under Regulation 4.

Any relevant NISM specification for the course-based route.

Eligibility conditions and applicable dates.

The certificate validity and revalidation rules.

These checks are especially useful when an organisation has employees performing different securities market functions.

How Does the Amendment Affect Regulation 4(2), 4(3) and 4(4)?

The amendment does more than insert a new clause under Regulation 4(1).

It also modifies related provisions that govern the way different categories of persons may obtain certification.

Changes to Regulation 4(2)

Regulation 4(2) concerns certification methods applicable to principals.

The amendment adds a reference to clause (d), bringing the newly introduced NISM course or programme pathway within the methods recognised under this provision.

Its actual application remains subject to the relevant regulatory conditions.

Changes to Regulation 4(3)

The amendment revises the wording used to identify the relevant date under Regulation 4(3).

Depending on the applicable route, it refers to:

The date of appearing for the examination.

The date of obtaining CPE.

The date of enrolment in a qualifying course or programme.

It also adds a reference to the new clause (d).

These changes are relevant to the operation of Regulation 4(3). The eligibility conditions in the full provision must still be considered.

Changes to Regulation 4(4)

The amendment adds clause (d) alongside clause (a) in Regulation 4(4).

This recognises the additional course- or programme-based option for the relevant category of specified persons.

Together, the amendments make the new pathway part of the existing certification structure rather than creating an unrelated certification system.

How Has SEBI Changed NISM Certificate Validity and Renewal?

Certificate validity is another area addressed by the October 2026 amendment.

Regulation 5 provides the framework for determining the period for which a certificate remains valid and how it may be revalidated.

Earlier Certificate Validity

The existing provision prescribed a three-year validity period from the date of grant or revalidation, as applicable.

Certificate holders were required to consider the relevant expiry date and the applicable revalidation requirements.

Revised Certificate Validity

The 2026 amendment adds wording allowing the certificate to remain valid for three years or another extended period specified by SEBI.

This means SEBI can provide for a different validity period where it makes an applicable specification.

The amendment itself does not announce one extended period for every NISM certificate.

A person whose certificate presently carries a three-year validity should not assume that it has automatically been extended.

Changes to Certificate Revalidation

Regulation 5(2) has also been amended.

The revised wording allows for arrangements otherwise provided by SEBI and recognises the possibility of an extended revalidation period.

The Continuing Professional Education provisions remain relevant to the applicable revalidation framework.

Certification Validity: Old vs New

For employers, certificate validity should continue to be checked against the certificate and applicable official specifications.

What Is the Role of Continuing Professional Education in Certification Renewal?

Continuing Professional Education, commonly called CPE, is intended to help securities market professionals maintain relevant knowledge and skills.

The NISM framework provides for CPE programmes in connection with applicable certifications.

Such programmes may address changes in securities market practices, regulatory requirements, governance and professional competency.

How CPE Connects With Revalidation

The applicable certification regulations link certificate revalidation with successful completion of the relevant NISM-prescribed CPE programme.

The 2026 amendment changes the wording concerning validity and revalidation periods. It does not generally remove the CPE framework.

Does Every Certificate Holder Have the Same CPE Requirements?

Not necessarily.

The applicable conditions may differ according to the certificate and current NISM specifications.

Certificate holders should therefore verify the requirements for their particular certification rather than relying on another employee's renewal arrangements.

Points to Verify Before Renewal

• Category of applicable certification.
• Expiry date of current certificate.
• Any CPE requirement for revalidation.
• Eligibility to join the program.
• Period of extension, if any, as specified by SEBI.
• NISM guidance currently regarding the above.
• No new CPE fee/course duration being introduced as per the October 2026 SEBI notification.

Regulation-Wise Analysis of the SEBI Certification Amendment, 2026

This amendment touches upon a number of related provisions. Some are substantive, and some are mere terminological/statutory modifications.

Amendment to Regulation 2

Regulation 2 deals with definitions.

The amendment removes the former definition of Associated Person and introduces the Specified Person definition.

It also updates the Companies Act reference from the Companies Act, 1956, to the Companies Act, 2013.

Amendment to Regulation 4

Regulation 4 sets out the methods for obtaining certification.

The new clause (d) introduces the NISM-specified course or programme pathway.

The related provisions have been amended to recognise this route where applicable.

Amendment to Regulation 5

Regulation 5 deals with validity and revalidation.

The amendment allows SEBI to specify an extended period instead of relying solely on the ordinary three-year period.

Insertion of Regulation 12

The new Regulation 12 provides for amendments to the other regulations identified in the Schedule.

Its purpose is to give effect to the consequential changes contained in that Schedule.

Which Other SEBI Regulations Have Been Amended?

The notification also introduces terminology amendments to two other regulatory frameworks.

SEBI (Debenture Trustees) Regulations, 1993

Regulation 17A(4) has been amended to replace "Associated Persons" with "Specified Persons".

This aligns the terminology used in the Debenture Trustees Regulations with the revised certification framework.

The Schedule does not separately create a new debenture trustee registration procedure or certification fee.

SEBI (Self-Regulatory Organizations) Regulations, 2004

The amendment changes terminology in Regulations 2(1)(ea) and 2(1)(ha).

References to Associated Persons are replaced with Specified Persons.

The amendments are consequential and should be understood in connection with the main certification regulations.

When Did the SEBI Certification Amendment Regulations 2026 Come Into Force?

The amendment came into force on 8 October 2026, when it was published in the Official Gazette.

The effective date applies to the amendment itself.

It should not be confused with deadlines or validity periods that may apply to individual certificate holders under separate SEBI and NISM requirements.

How Will the SEBI Certification Amendment Affect Businesses?

Securities market intermediaries may need to review their certification arrangements following the October 2026 changes.

The level of work involved will depend on the business's activities, the categories of employees it engages and the certification requirements applicable to those employees.

Impact on Securities Market Intermediaries

Intermediaries must determine if their present certification process is in agreement with the amended framework.

This can be achieved by reviewing the classification of covered personnel and determining whether their present internal processes have correctly identified the appropriate certification process.

The new terminology may also require updates to internal policy references.

These are practical review measures rather than a separate filing obligation introduced by the amendment.

Impact on Employees and Principals

Employees and principals should understand which certification requirements apply to their functions.

Where the new NISM course-based pathway is relevant, they may need to verify whether NISM has specified an eligible programme.

The validity of the certificates already issued should also be reviewed and assessed.

Impact on Agents and Distributors

Agents and distributors involved in securities business should familiarize themselves with the certification requirements for their field of business.

This is particularly relevant where they operate under arrangements with registered intermediaries.

The revised definition does not, by itself, prescribe one certificate for every distributor.

Impact on Foreign Investment Entities

The new definition expressly refers to employees of foreign portfolio investors and foreign venture capital investors working in India.

Relevant organisations may need to consider whether any of their India-based personnel fall within certification categories prescribed by SEBI.

Impact on Compliance and HR Teams

Compliance and HR teams often maintain information about employee qualifications, professional certifications and renewal dates.

Following the amendment, an organisation may find it useful to review these records together.

This can help ensure that certification decisions are based on current regulations rather than outdated terminology.

What Compliance Requirements Should Securities Market Intermediaries Review?

The certification obligations applicable to an organisation cannot be determined from the October 2026 amendment alone.

The existing regulations, relevant SEBI notifications and current NISM requirements must also be considered.

The following areas deserve attention.

1. Identification of Covered Personnel

Businesses should identify employees and other individuals whose functions may fall within the certification framework.

The assessment should consider the actual activities performed.

2. Applicable Certification Requirements

After identifying the relevant personnel, the organisation should determine which certification requirements SEBI has prescribed for those functions.

However, the requirement of the same certificate may not be necessary for every individual under the definition.

3. Certification Approaches Allowed

The concerned individual must ensure that he or she opts for an approach allowed under the relevant provisions.

This new approach can be used where the particular NISM specification applies.

4. Certificate Validity Periods

Validity periods for certificates need to be verified.

Organizations cannot take for granted that October 2026 amendment makes all certificates valid.

5. Revalidation and CPE

If there are CPE or any revalidation requirements, the person concerned must confirm the current requirements.

6. Internal Compliance Controls

Companies can check their internal controls in relation to certification status.

Such reviews can help identify certificates approaching expiry and possible gaps in employee certification records.

What Documents and Records Should Intermediaries Review?

The amendment does not prescribe a new universal document-submission process.

However, reviewing relevant internal records may help intermediaries assess their certification position.

These records should not be presented as a newly mandatory filing list under the 2026 amendment.

What Are the Benefits of the Revised SEBI Certification Framework?

The amendment introduces changes that may be useful for market participants, particularly in relation to certification methods and validity periods.

• Additional route for certification: The newly inserted clause (d) permits qualifying certification through a course or programme specified by NISM in consultation with SEBI.
• Flexibility in validity periods: SEBI can specify an extended validity period where applicable.
• Updated regulatory terminology: The definition of Specified Person provides revised wording for identifying individuals under the regulations.
• Consistency across related provisions: Terminology amendments have been made to the Debenture Trustees Regulations and Self-Regulatory Organizations Regulations.
• Scope for administrative review: Intermediaries can review existing certification processes against the amended provisions.

The actual benefits will depend on the category of person, applicable NISM specifications and any further directions issued by SEBI.

What Challenges May Businesses Face After the SEBI Certification Amendment?

Although the notification introduces additional flexibility, interpreting the changes may require attention from compliance teams.

Identifying the Correct Certification Category

Businesses may have several employees performing different functions.

Determining which certification applies requires an examination of the relevant role and regulatory requirements.

Understanding the New Course-Based Pathway

The amendment refers to courses or programmes specified by NISM in consultation with SEBI.

Businesses must check whether a particular programme qualifies before relying on it as a certification route.

Managing Certificate Validity

An intermediary may have employees holding certificates with different validity and renewal requirements.

The revised Regulation 5 makes it important to verify the applicable period rather than assume one rule applies to everyone.

Updating Internal Records

Policies, employee records and certification trackers may still use the earlier terminology.

Organisations may choose to update these references after reviewing the amended regulations.

Possible Administrative Costs

Costs might be incurred in the course of internal reviews, training and documentation changes.

But the October 2026 notice does not provide any cost for the universal certification process.

What Are the Risks of Misunderstanding the New SEBI Certification Rules?

The biggest risk is treating a targeted regulatory amendment as though it introduces a completely new certification regime.

Businesses should avoid the following mistakes.

• Assuming every employee needs new NISM certification: The amendment does not introduce a universal fresh-certification requirement.
• Assuming every NISM programme qualifies: The new route is limited to programmes specified in consultation with SEBI.
•  Disregarding the existing validity dates: The extended validity has to be justified by an applicable SEBI regulation.
• Equating the same criteria for all employees: The certification criteria relate to the job profile and category.
• Overlooking existing SEBI notifications: Earlier applicable certification notifications may remain relevant.
• Treating internal reviews as statutory filings: The amendment does not create a new universal SEBI filing procedure.

The correct approach is to examine the amended provisions together with the applicable certification requirements.

What Should Securities Market Intermediaries Do Next?

Businesses should focus on understanding the amendment and checking whether their existing certification arrangements require attention.

A practical review can be organised as follows.

These actions are recommendations for managing the regulatory change.

They should not be described as mandatory steps with a new deadline unless supported by an applicable legal provision.

Best Practices for Managing SEBI Certification Compliance

Certification management will become much simpler for organizations if they are able to have correct information on their employees and requirements for their jobs.

Intermediaries may consider adopting the following internal practices.

• Maintain a certification register: Record the certificate category, holder, validity period and relevant renewal information.
• Review employee roles: Check whether changes in responsibilities affect applicable certification requirements.
• Verify NISM programmes: Use current official information before selecting a course or programme for certification.
• Track certificate expiry dates: Maintain a suitable process for reviewing certificates that may require revalidation.
• Coordinate within departments: The HR and compliance department should exchange information about certifications.
• Update on regulations: Determine whether there are any new SEBI regulations regarding certification.

Update internal terminology: Revise policies where references to the earlier regulations no longer reflect the current framework.

These measures can support internal compliance management, although they do not replace the legal requirements prescribed by SEBI.

What Should Securities Market Participants Monitor in the Coming Months?

The October 2026 amendment leaves room for further specifications under the certification framework.

One area to monitor is the identification of NISM courses or programmes qualifying under Regulation 4(1)(d).

Another is the possibility of SEBI specifying different certificate validity or revalidation periods.

Businesses should distinguish between the flexibility permitted by the amendment and specific directions that have actually been issued.

Until a relevant specification applies, organisations should follow the certification requirements governing their personnel.

How Can Corpseed Help With SEBI Compliance Consulting Services?

The October 2026 amendment may require securities market intermediaries to revisit their understanding of certification requirements, employee classifications and internal compliance arrangements.

Businesses looking for SEBI compliance consulting services may benefit from professional assistance in interpreting the applicable regulations and reviewing their existing procedures.

Subject to the scope of services offered, Corpseed can support businesses in the following areas.

SEBI Regulatory Compliance Advisory

Understanding the regulations imposed by SEBI related to the securities market operations.

Regulatory Applicability Assessment

Reviewing business activities and employee functions to identify which regulatory provisions may apply.

Compliance Gap Assessment

Examining existing procedures against applicable regulatory requirements and identifying areas that may need further review.

Certification Requirement Assessment

Guiding the business regarding its certification responsibilities related to its activities and identifying SEBI and NISM guidelines for it.

Certification is still within the official NISM framework.

Compliance Documentation Support

Assistance with reviewing relevant internal documents, regulatory references and compliance policies.

Ongoing Regulatory Compliance Support

Helping businesses understand subsequent regulatory changes and assess their possible operational implications.

Corpseed's regulatory compliance consulting services can be useful for organisations seeking a clearer understanding of their obligations under the amended SEBI framework.

Corporations may reach out to Corpseed to discuss the regulatory compliance issues for which guidance is required from SEBI.

Key Takeaways

The SEBI Certification Amendment Regulations 2026 introduce targeted changes to the certification framework for persons engaged in securities market activities.

The amendment replaces Associated Persons terminology with Specified Persons, introduces a revised definition, adds another NISM-specified course or programme certification route and permits SEBI to specify extended certificate validity periods.

The amendment came into force on 8 October 2026.

It does not automatically require every securities market employee to obtain fresh certification. Nor does it automatically extend the validity of every existing NISM certificate.

Intermediaries and certification holders, on the other hand, will need to know the amendments along with the certification regulations that apply to their roles.

A review of certification categories, validity periods, and NISM regulations may assist companies in making the right decisions in terms of compliance.