Mumbai: Market regulator Sebi has notified new norms for 'associated persons' working as terminal users and sales personnel of brokers and other traders, making it mandatory for them to get necessary certifications to operate in the equity derivatives market.
The term "associated person" is generally used for permanent or temporary employees of various market entities, including FIIs and other foreign entities, dealing in the Indian securities space.
"...It is notified that with effect from the date of this notification, the associated persons functioning as approved users and sales personnel of the trading members of an equity derivative exchange or equity derivative segment of a recognised stock exchange shall obtain certification for the purpose...," Sebi said in a notification dated January 11.
The regulator said that these entities would have to clear the 'Equity Derivative Certification Examination (EDCE)' from the National Institute of Securities Market.
Sebi has directed the trading members to ensure that all such employees who are approved users or sales personnel obtain the certification within two years.
Meanwhile, those 'associated persons' who are hired after January 11, this year, would have to obtain the certification within one year from date of his employment.
However, Sebi has exempted associated persons who have the BSE's Certificate on Derivatives Exchange or the NCFM- Derivative Market (Dealers) Module of National Stock Exchange, from the requirement of obtaining certification.