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NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Regulatory, Governance and Ethical Aspects of Portfolio Managers

Which of the following best describes the requirement for a PMS distributor to hold NISM certification under SEBI's rules?

Individuals involved in distributing PMS must hold a valid NISM-Series-XXI-A certificate. The requirement applies to the persons dealing with clients, not just the firm, and is not waived by size of business or by holding a mutual fund distributor registration.

  1. AOnly the firm needs certification, not its individual employees dealing with clients
  2. BIndividuals associated with distribution of PMS must hold a valid NISM-Series-XXI-A certificationCorrect
  3. CCertification is needed only for distributors selling more than Rs 10 crore
  4. DNo certification is needed if the distributor is an AMFI-registered mutual fund distributor

Explanation

SEBI requires persons distributing PMS to hold valid NISM-Series-XXI-A certification. There is no turnover threshold and the mutual fund registration does not substitute for it.

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