All about Sebi’s PG course for people aspiring to be investment advisors

India’s market regulator, the Securities and Exchange Board of India (Sebi), requires applicants to have a postgraduate degree or professional certifications in finance-related (specified) fields to be eligible. 

For the rest, the National Institute of Securities Market (NISM), set up in 2006 by Sebi, has a 15-month postgraduate programme that can be pursued online, offline or part-time. 

Rachana Baid, dean (academics), NISM, explains how.

Who should apply for the programme?

People who don’t meet Sebi’s criteria can get the chartered financial analyst (CFA) charter or complete the postgraduate programme in the securities market from the NISM to be eligible for an IA, RA or PMS licence. During the 15-month course, people are taught about the securities market in the first three terms. In the fourth term, they need to choose a specialization: portfolio management, investment advisory, or research analysis, and in the 5th term, they are required to submit a dissertation.

To get the licence for the desired specialization, people still need to clear the respective NISM exam and meet other experience requirements specified by Sebi.  

Candidates who wish to pursue triple or dual specializations are exempt from taking the common trimesters (I, II, and III) courses within three consecutive years. 

There is no separate interview process. Thus, all three specializations can be completed in three consecutive years (without any gaps).

Can people do this part-time and online?

This is a weekend programme offered in hybrid mode. Those in Mumbai can come to our BKC campus or join online. Every Saturday, we have a three-hour class from 6pm, and every Sunday, we have a six-hour session from 10am. All participants work full-time, so this course is meant to be part-time. We have a compulsory attendance requirement of 80%. Those outside India can also join the course online.

Who can apply for this, and what’s the fee?

Anyone who has graduated from a recognized university can apply for the course. The fee is ₹2.75 lakh plus GST. We provide some group discounts for students joining from the same organization. The fee is lower than those charged by most postgraduate programmes.

How many students take the course in a year?

We decide internally every year. This time, we took 86 students, although we normally aim for 60-70 students. This year, we got about 600 applicants. We don’t have a written entrance test, but we select students through an online personal interview round. Going forward, we will increase the number of batches each year.

What will be taught in this course?

The programme is structured so that anybody who wants to enter the securities market, even from a non-finance background, should be able to pick up. Overview of securities markets, quantitative methods, financial statement analysis, economics, financial theories and behavioural finance, fixed income and alternative assets, security analysis and valuation, derivatives and risk management, regulatory ecosystem, and chosen specialization will be covered over the 15 months.

Candidates will be evaluated based on online assessments, case study discussions, quiz/class tests, individual and/or group assignments, paper-pencil tests, and class participation. At the end of every term, there would be an examination for each subject. They need to clear it to go to the next level. Exams will be conducted online through a remote proctored platform on weekends per Indian Standard Time. 

To be sure, Sebi has proposed reducing the eligibility criteria for IA and RA from postgraduation in a finance-related subject (specified field) to graduation in a relevant field. The NISM certificate would still benefit those without a finance-related graduate degree.