SEBI Introduces Single Certification For Mutual Fund Distributors

The Securities and Exchange Board of India (SEBI) has introduced a single certification examination for persons selling and distributing mutual funds and Specialised Investment Funds (SIFs).

This move aims to simplify the eligibility requirements for distributors. Under the new framework, distributors will need to hold a valid NISM Series V-D – Mutual Fund-Specialised Investment Fund Distributors Certification to sell both mutual fund and SIF products.

The regulator has eliminated the need for separate certifications for mutual funds and SIFs. Holders of the new certification will be eligible to distribute both types of products.

The existing requirement of holding the NISM Series XIII – Common Derivatives Certification for SIF products will cease to apply after September 21, 2026. To ensure a smooth transition, distributors with a valid Series XIII certification obtained on or before September 21, 2026, will not need to obtain the new Series V-D certification until their existing derivatives certification expires.

During the transition period, these distributors will still need to hold a valid NISM Series V-A – Mutual Fund Distributors Certification.

SEBI introduced the SIF framework in February 2025 to bridge the gap between traditional mutual funds and high-ticket Portfolio Management Services (PMS). SIF products require a minimum investment of Rs 10 lakh and offer greater flexibility through hedging, derivatives, and long-short investment strategies.

The assets under management (AUM) of SIFs increased 29% to Rs 17,858 crore at the end of June from Rs 13,814 crore a month earlier.

This move is expected to simplify the process for distributors and increase efficiency in the industry. It will also provide more opportunities for investors to access a wider range of products.

The introduction of the single certification is a significant step towards streamlining the regulatory framework for mutual funds and SIFs. It will help to reduce costs and increase accessibility for distributors and investors alike.

Overall, the new certification framework is a positive development for the industry, and it is expected to contribute to the growth of the mutual fund and SIF markets in India.

The move is also expected to increase transparency and accountability in the industry, as distributors will need to meet the new certification requirements to operate.

In conclusion, the introduction of the single certification for mutual fund and SIF distributors is a significant development that is expected to have a positive impact on the industry. It will simplify the eligibility requirements for distributors, increase efficiency, and provide more opportunities for investors to access a wider range of products.