Sebi to ensure that brokers are more educated and informed
Mumbai: Just when you thought you neighbourhood stock broker was out to dupe you and make a quick buck, India’s capital markets regulatory authority, the Securities and Exchanges Board of India has made it mandatory for every employee with capital market intermediaries to go through a certification test.

This directive would include brokers, employees with mutual funds and derivative firms.

The test is not merely about finding out the guy's knowledge of investment products and procedures; which it also is. But more importantly, it's on how well-versed he is in investor protection.
The entire syllabus for this certification comprises seven sections, including investor profile, investment products, investment maths, investment procedures, rules and regulation, investor protection, ethics and code of conduct.

Sebi is trying to introduce this certification in order to ensure that people entering the market as intermediaries are of a certain financial calibre and moral fibre, which, in turn, would ensure that investor interests are best served. This, according to Sebi, is all the more important at a time when derivatives and the other complicated products are being introduced.

The Sebi committee for certification has recommended that every person, regardless of qualification they possess, will be required to pass the certification test prior to seeking employment with capital market intermediaries.

Apart from them, the staff and officials of stocks exchanges will also have to clear the certification examination.

Any intermediary found violating the norm of minimum number of certified employees will be deregistered from the date of violation. This certification examination can be taken by any one irrespective of age, qualification, age employment or experience, but the candidate should have at least 12 years of schooling.
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