In a significant move to widen the talent pipeline for India's booming financial markets, the Securities and Exchange Board of India (SEBI) has removed a key educational barrier. The market regulator has now allowed graduates from any academic discipline to apply for registration as Investment Advisors (IAs) or Research Analysts (RAs). This decision, announced in early December 2025, marks a departure from the previous rule that restricted eligibility to candidates with finance-specific degrees like business management, economics, or capital markets.
Why SEBI Is Broadening the Talent Pool
The regulatory shift is a direct response to the explosive growth of India's investing landscape. With millions of first-time investors entering the markets and wealth management assets projected to soar, SEBI recognized the urgent need for more qualified professionals. The scale of opportunity is immense. A Deloitte report projects that assets under management (AUM) for wealth firms could nearly double to $2.3 trillion by 2028–29. Furthermore, financial wealth held by affluent Indian households is expected to surge from $1.1 trillion to $2.3 trillion in the same period.
Retail participation has reached historic levels. By the end of the September quarter, retail shareholders held 18.75% of the total market capitalisation on the National Stock Exchange (NSE)—the highest share in 22 years. The NSE itself had about 12.2 crore unique registered investors as of October 2025. Adding to this, monthly inflows through Systematic Investment Plans (SIPs) consistently exceed Rs 29,000 crore. This rapid expansion is creating robust demand for skilled advisors and analysts who can guide a growing base of investors.
Competence Remains Paramount: The NISM Exam Gatekeeper
While the educational pathway has been widened, SEBI has emphasized that professional competence is non-negotiable. The relaxation applies only to the entry criterion. All aspiring IAs and RAs must still clear the rigorous certification examinations conducted by the National Institute of Securities Markets (NISM). These standardized tests ensure that entrants possess the necessary knowledge of securities markets, regulations, and ethical practices, regardless of their undergraduate background.
Industry experts have welcomed the move. Vipin Kumar, Assistant Vice President at Globe Capital Market, noted that the industry will need far more certified professionals over time. He stated that the changes will make it easier for new firms to register and help broaden the field of qualified experts.
Understanding the Roles: IAs vs. RAs
The two roles, though distinct, are both critical to a healthy market ecosystem.
Investment Advisors (IAs) provide personalized investment guidance, helping clients—especially new investors—manage portfolios and make informed financial decisions. Under SEBI norms, an individual IA can serve up to 300 clients and earn fees up to Rs 3 crore per financial year. Crossing either threshold requires transitioning to a non-individual entity.
Research Analysts (RAs) specialize in analyzing companies, sectors, and economic trends to produce evidence-based reports and recommendations. Their work informs a wide audience, from institutional investors to retail traders, adding clarity and depth to market understanding.
Together, these professionals bolster investor confidence, enhance financial literacy, and support the sustainable growth of India's capital markets. By easing entry barriers while maintaining high testing standards, SEBI's policy aims to create a more diverse and scalable workforce ready to power the nation's financial future.
