A database of market participants will be created for the first time in the country, market regulator Securities and Exchange Board of India (Sebi) said here on Wednesday.

The National Institute of Securities Market (NISM) will be co-ordinating the certification in the  securities markets and it would engage agencies to administer computer-based multiple choice tests across the country, a Sebi release informed.

Scope of certification

Certification has been mandated in a number of  jurisdictions including the US, UK and Singapore. In India, certification has been mandated for distributors of MFs, traders in the derivatives segment and depository participants.

The new regulations enlarge the scope of mandated certification to a number of new segments of intermediaries and their associated persons. All persons engaged in handling investors’ money, investors’ assets, investor complaints, dealing with operational risk, attending to compliance and persons responsible for management of intermediates will have to demonstrate minimum proficiency standards in order to maintain their registrations with Sebi.

The certificate is to be obtained by passing an examination approved by Sebi and would be valid for 3 years.

Subsequently, such persons would be required to complete an approved programme of Continuing Professional Education to maintain the validity of certificate.

Sebi earlier on Wednesday organised a workshop for market participants on ‘Certification of Associated Persons in the Securities Markets’.