The Securities and Exchange Board of India (Sebi) today announced that mutual fund (MF) distributors and agents would need a National Institute of Securities Market (NISM) certificate to sell policies from tomorrow.
“With effect from June 1, associated person, ie, distributors, agents, or any person engaged in the sale of MF products, shall be required to have a valid certification from NISM,” Sebi said in a notification.
Experts said the move was intended to assure quality service to investors and bring the unorganised segment under its loop to curb mis-selling.
“Sebi wants to ensure that the customers receive quality service from investors. Sebi feels certified agents and distributors will provide investors with good suggestions,” SMC Capitals Equity Head Jagannadham Thunuguntla said.
The notice added that if the said person possessed a valid certificate of the Amfi Mutual Fund (Advisors) Module before June 1, he would be exempted from the requirement of having an NISM certificate.
NISM is a public trust set up by Sebi as an autonomous body.