Introduction
Authorised persons play a crucial role in the financial market. They are the intermediaries between investors and stockbrokers and perform key functions to facilitate investments. Their functions include buying and selling securities, increasing stockbrokers' business volume, advising clients, etc.
You must fulfil the regulatory requirements of the Securities and Exchange Board of India (SEBI) to become an authorised person. You must also gain the necessary knowledge and official certification. Let’s dive into the three courses that can pave the way for you to become an authorised person in India.
Courses for authorised persons in India
To become an authorised person, a comprehensive understanding of the securities market is paramount. Here are three courses that can offer you the same:
- NSE Academy Certification in Financial Markets (NCFM)
An NCFM certification is one of the best for building a career in the Indian financial market. The National Stock Exchange (NSE)introduced the NCFM certification in 1998. It involves an online exam to evaluate your knowledge and skills in the financial markets. NCFM provides a range of modules covering areas like mutual funds, commercial banking, currency derivatives, financial markets, securities markets, equity derivatives, etc. The modules are categorised into beginner, intermediate, and advanced levels, meeting the varying needs of aspirants.
- National Institute of Securities Market (NISM)
NISM certification courses are excellent if you want to build a career in financial markets. The institute provides courses to enhance your knowledge about the stock market. You are required to choose the NISM Series VI Depository Operation and NISM Series VIII: Equity Derivatives certification to qualify as an authorised person from the NISM. The institute also provides certification programs and a Post Graduate Diploma in Management (PGDM). A few full-time programs provided by the institute include PGDM Fintech, PGDM Securities Market, Post Graduate Programme (PGP) Securities Market and PGP Quantitative Finance. For a few stockbroking firms, NISM certification is mandatory to seek employment as an authorised person.
- BSE Certification on Securities Market (BCSM)
Another course to become an authorised person in India is related to the Bombay Stock Exchange (BSE) Certification on the Securities Market. The BSE conducts an exam to check your skills in various aspects of the stock market. The course for the BCSM exam provides an understanding of the secondary market, mutual funds, tax provisions, the concept of the Bombay Online Trading System (BOLT), surveillance, book-building Initial Public Offerings (IPOs) and much more. The certification comes with a six-year validity.
Eligibility criteria to become an authorised person
Learning about the eligibility criteria is a crucial step to becoming an authorised person. The eligibility criteria to become an authorised person according to SEBI is as follows:
- A partnership firm, a Limited Liability Partnership (LLP), or an individual or corporate body can be appointed as an authorised person
- You must be at least 18 years old. All partners must qualify for this criterion, even if it's a partnership firm or an LLP
- You must be a citizen of India
- You must have cleared at least the 10th standard or equivalent exam from a government-recognised institution
- You should not have been convicted of offences involving dishonesty or fraud
- You must have good character and reputation
- You must have a good understanding of the financial markets
- You should have adequate staff, equipment, office space, etc., to discharge duties on the stockbroker’s behalf
Confidently counselling investors is crucial if you want to succeed as an authorised person. So, besides meeting the basic eligibility criteria, you must have good communication skills and the ability to persuade clients. Attracting a lot of clients is vital since your revenue depends on the commissions generated.
Conclusion
In conclusion, pursuing certification courses provided by the BSE, NSE, and NISM can fulfil your dream of becoming an authorised person in the Indian financial markets. Besides honing your skills and knowledge, these courses enhance ethical conduct and professionalism, which are crucial for a successful career in financial services. You can choose from any authorised persons’ courses and related examinations to receive certification.
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