More talent for the market: Why SEBI has made it easier to become an advisor or analyst

However, SEBI has made it clear that while educational pathways have been broadened, professional competence remains non-negotiable. Aspirants must continue to clear the mandatory certification examinations conducted by the National Institute of Securities Markets (NISM). These exams are required for several roles across India’s securities ecosystem, including mutual fund distribution and dealing in equity and derivatives. What does this move change? SEBI’s decision is expected to significantly expand opportunities for individuals aspiring to become advisors and analysts — roles that are witnessing rising demand as investing turns more accessible and retail participation grows. The scale of opportunity is large. Deloitte, in a report earlier this year, projected that the assets under management (AUM) handled by wealth management firms in India could almost double to $2.3 trillion by 2028–29, compared to FY24 levels. Financial wealth held by affluent households is also expected to surge from $1.1 trillion to $2.3 trillion during the same period. Alongside institutional investors and high-net-worth individuals, the retail investor’s presence in the market has deepened sharply. By the end of the September quarter, retail shareholders held 18.75 per cent of total market capitalisation on the NSE, the highest in 22 years, according to brokerage Angel One. According to the National Stock Exchange, as of October 2025, there were about 12.2 crore unique registered investors on its platform. Retail investors also pump in over Rs 29,000 crore into mutual funds every month through systematic investment plans (SIPs). Story continues below this ad Such rapid expansion is likely to generate strong demand for qualified professionals who can guide investors and decode an increasingly complex market. The relaxed criteria, industry experts say, will help create a steady pipeline of skilled entrants. “With time, the industry will need far more certified professionals,” said Vipin Kumar, assistant vice president, equity research and PMS, Globe Capital Market. “The changes will make it easier for new firms to register as IAs and RAs and will help broaden the field.” Who are IAs and RAs, and why are they important? Investment advisors are individuals or organisations that provide personalised investment guidance, helping clients manage their portfolios and make informed decisions. They are particularly useful for new or inexperienced investors who may need a structured approach to financial planning. As per SEBI’s updated norms, an individual IA is one who serves fewer than 300 clients and earns less than Rs 3 crore in fees per financial year. If either threshold is crossed, the advisor must transition into a non-individual (entity-level) IA within three months, subject to additional compliance requirements. Story continues below this ad Research analysts, on the other hand, specialise in studying markets, companies and sectors to offer evidence-based recommendations. Their reports and insights guide a wider audience, ranging from institutional investors to retail traders, by providing clarity in a dynamic market environment. Together, IAs and RAs play a crucial role in strengthening investor confidence, improving financial literacy and supporting the growth of India’s capital markets. SEBI’s move to ease entry barriers, while maintaining rigorous testing standards, seeks to equip the industry with the diverse and skilled workforce it increasingly needs.