SEBI Registration and NISM Exams for Stock Market Roles

Quick Answer: Stock market work in India has five routes, so your role decides your exam. First, Authorised Persons distribute for a broker. Second, Research Analysts use NISM Series XV. Third, Investment Advisers use X-A and X-B. Also, portfolio managers need SEBI registration and ₹5 crore net worth, while PMS distributors use XXI-A.

Key Facts

SEBI closed the sub-broker category in 2018, so Authorised Persons now do that work.
Research Analyst numbers start with INH, but Investment Adviser numbers start with INA.
NISM Series XV and VIII both have 100 marks and a 60% pass level, while each lasts 2 hours.
Only a company or LLP can apply, because a portfolio manager needs SEBI registration.
Also, a mutual fund distributor registration does not allow stock advice or broking.

Many people want to work in the stock market, but they face one simple question. Which licence and which exam do they need? The answer depends on the job, because each role follows a different route. A stock distributor, an adviser, an analyst, and a portfolio manager all have their own rules. This guide explains all five routes in plain words. First, you will see the NISM exam for each role. Then you will see the nature of the work and who should choose what. Finally, you will learn how to check a person’s SEBI registration before you pay.

Stock Market Roles Compared: Exam and Registration

Role	What you do	NISM exam	Registration
Stock market distributor (Authorised Person)	Bring clients to a broker’s trading platform	Series VIII for derivatives. Other segments need their own exam	Approved by the exchange through a SEBI-registered broker
PMS distributor	Introduce clients to portfolio management services	Series XXI-A	Certification needed. Check current conditions
Research Analyst	Publish stock research and recommendations	Series XV	SEBI registration (INH)
Investment Adviser	Give personalised advice for a fee	Series X-A and X-B	SEBI registration (INA)
Portfolio Manager	Manage client portfolios	Series XXI-A and XXI-B for the Principal Officer (confirm current rule)	SEBI registration. Company or LLP only. ₹5 crore net worth

This guide comes from Deepak Wealth Framework, a Chennai-based financial planning firm in Pallikaranai. We have 15+ years of experience serving families, and Deepak Gokul holds the CWM® certification. He is also NISM-Series-XVII: Retirement Adviser Certified. We built this guide from official SEBI and NISM pages. However, rules and exam details change, so check the latest version on those sites before you act.

Route 1: Stock Market Distributor (Authorised Person)

A stock market distributor brings clients to a broker’s trading platform. The official name is Authorised Person, or AP. SEBI closed the sub-broker category in August 2018, so old sub-brokers moved to AP or trading member status.

You do not register with SEBI directly as an AP. Instead, a broker appoints you, and the stock exchange approves you. Exam rules also depend on the segment. For equity derivatives, brokers ask for NISM Series VIII. Some brokers also ask for Series VII on operations and risk. Because the broker and exchange set the final conditions, ask them first.

Route 2: PMS Distributor and Portfolio Manager

PMS means Portfolio Management Services. A portfolio manager invests a client’s money in stocks and other securities. A PMS distributor, however, only introduces clients to a portfolio manager. This role needs NISM Series XXI-A certification.

Becoming a portfolio manager is much harder. First, only a company or LLP can apply to SEBI. Next, SEBI requires a net worth of ₹5 crore. Then the Principal Officer needs at least 5 years of related experience. At least 2 of those years must be in portfolio management or advisory work. The Principal Officer also needs a relevant qualification and NISM certification.

Routes 3 and 4: Research Analyst and Investment Adviser

A Research Analyst (RA) studies companies and publishes research reports. SEBI requires registration, and the exam is NISM Series XV. Analysts use two main methods. First, fundamental analysis studies a company’s business, profit, and debt. Second, technical analysis studies price charts and trading volume.

An Investment Adviser (IA) gives advice that fits one client’s goals, income, and risk comfort. SEBI also requires registration, and the exams are NISM Series X-A and X-B. However, registered advisers cannot promise assured returns.

What Do the NISM Exams Cover?

NISM Series XV: Research Analyst

This exam covers fundamental analysis, technical analysis, valuation, and research reports. NISM launched a revised version on 20 January 2026. The exam has 100 marks. First, it has 80 multiple-choice questions. Then it has 5 case studies with 4 questions each. You get 2 hours, and the pass mark is 60 marks. However, each wrong answer costs 0.25 marks, so accuracy matters. Technical analysis alone also carries 15 marks.

NISM Series X-A and X-B: Investment Adviser

X-A is Level 1, while X-B is Level 2. NISM’s published table lists 100 marks, 120 minutes, a 60% pass mark, and 25% negative marking for both. Because that table is older, check the latest details on the NISM website.

NISM Series VIII: Equity Derivatives

This exam covers futures, options, strategies, settlement, and risk. It has 100 questions, 100 marks, 120 minutes, a 60% pass mark, and 25% negative marking. However, it is a work certification, not an advice licence. Also, NISM has discontinued Series XI (Equity Sales).

Nature of Work: How the Roles Differ

The three exam-linked roles differ in daily work and responsibility. This table gives a general view, but your actual duties depend on your employer and SEBI rules.

Point	Research Analyst (Series XV)	Investment Adviser (X-A, X-B)	Equity derivatives, broker side (Series VIII)
Nature of work	Studies companies and forms a view on stocks	Plans a client’s money around goals and risk	Handles client trades in futures and options
Daily tasks	Reads balance sheets, builds valuation models, studies charts, writes reports	Meets clients, checks goals and risk comfort, sets asset allocation, reviews it often	Takes and executes orders, explains margins and expiry dates, watches client positions
Who you serve	Many readers at once	One client or family at a time	The broker’s clients
Main output	A research report with a view	A personal financial plan	Executed trades and risk alerts
Who decides	The reader	The client, on your recommendation	The client. You execute and manage risk
Core duties	Base reports on facts, show your registration number, disclose conflicts	Check suitability, put the client first, disclose conflicts, never promise assured returns	Follow exchange and broker rules, complete KYC, collect margins, warn about risk
Limit	Does not give a personal plan to one client	An individual adviser cannot also distribute products to advisory clients	Cannot give independent advice without SEBI registration

Benefits and Who Should Choose What

Series XV: choose it if you like analysis and writing. You can publish research legally, but you serve many readers, not one family.
Series X-A and X-B: choose them if you enjoy client relationships. You can give personal advice for a fee. However, conditions on qualification, experience, and net worth are stricter.
Series VIII: choose it for broker-side work or an Authorised Person role. It also teaches futures and options well, but it does not allow independent advice.

Worked Example: How Negative Marking Works in Series XV

Say you attempt 90 questions. First, you get 75 right and 15 wrong, and you skip 10. Then your score is 75 minus 15 times 0.25. That is 75 minus 3.75, which gives 71.25 marks. So you pass.

Now say you attempt all 100. However, this time you get 62 right and 38 wrong. Your score is then 62 minus 9.5, which gives 52.5 marks. So you fail. Because four wrong answers cancel one right answer, accuracy matters as much as speed.

Qualification and Experience: What SEBI Expects

NISM exams are open to everyone, so you do not need a degree to sit them. However, SEBI registration is a separate step. SEBI sets the minimum qualification, experience, and net worth for each role.

For an adviser, SEBI generally looks for a relevant professional or postgraduate qualification, or a graduate degree with experience. For a research analyst, it generally looks for a relevant graduate-level qualification. Also, the equity exams appear to be offered in English only. So check nism.ac.in for language options and the latest rules.

How to Register for a NISM Exam

NISM runs registration and enrolment fully online. The steps below follow the official NISM registration guide.

First, create an account on the NISM Certification Portal. Keep your PAN card, a recent photo, and an address proof ready.
Next, wait for NISM to check your profile. NISM verifies new accounts within 48 hours.
Then log in, choose your exam, and pick a city, test centre, and time slot. After that, pay online by card, net banking, or UPI.
Also print your admit card. Carry it with an original photo ID, such as PAN, Aadhaar, driving licence, or passport.
Finally, reach the test centre 30 minutes early. NISM issues the certificate within 3 to 4 working days, and you download it from the portal.

Also note three rules. Enrolment closes 48 hours before the exam. You can reschedule once, up to 4 days before the exam date. However, you must arrive on time, because the exam portal does not allow late entry.

For study, NISM offers free workbooks on its workbook download page. You can also take practice exams after you log in. Later, you can renew a certificate through a CPE or eCPE programme within 12 months before it expires. However, an expired certificate cannot be renewed, so you must pass the exam again.

How to Check Whether a Stock Adviser Is Genuine

First, ask for the SEBI registration number. Adviser numbers start with INA, but analyst numbers start with INH.
Next, verify the number on SEBI Check, the regulator’s online verification tool.
Then pay only to a verified UPI ID that ends in @valid. SEBI introduced these handles for registered advisers and analysts, and they went live on 1 October 2025.
Finally, walk away from anyone who promises assured returns or fixed profits.

Common Mistakes to Avoid

Trusting tips from unknown groups. Many Telegram and WhatsApp channels have no SEBI registration, so check the number before you act.
Confusing the exam with the licence. Passing a NISM exam is only one step, because you still need SEBI registration to advise.
Studying from old notes. NISM revised Series XV in January 2026, so use the latest workbook and syllabus.
Ignoring conflicts. If you sell mutual funds and also advise, SEBI’s separation rules for advisory and distribution clients apply to you.

Frequently Asked Questions

Can I give stock tips without SEBI registration?

No, because SEBI requires registration as an Investment Adviser or Research Analyst. This applies to anyone who gives investment advice for any payment or benefit. So giving paid tips without registration breaks SEBI rules. Register first, then advise. Also read the current rules on sebi.gov.in before you start.

What is the difference between an Authorised Person and a stock broker?

A stock broker is a SEBI-registered member of a stock exchange. However, an Authorised Person works under a broker and gets approval from the exchange. Since SEBI closed the sub-broker category in 2018, Authorised Persons now do that work. They bring clients to the trading platform of the broker. Also ask your broker for its exact conditions.

Do I need NISM Series VIII to work as an Authorised Person?

Often, yes, when you deal in equity derivatives. Brokers and exchanges ask for NISM Series VIII for that segment, but other segments need their own certification. Also, rules differ by broker and exchange, and they change over time. So ask your broker which exam applies before you book anything.

Which NISM exam do I need to become a Research Analyst?

You need NISM Series XV, the Research Analyst Certification Examination. It covers fundamental analysis, technical analysis, valuation, and research reports. The exam carries 100 marks and lasts 2 hours, so plan your time well. However, the pass mark is 60 marks, and each wrong answer costs 0.25 marks. Also confirm the latest format on nism.ac.in before you book.

Which NISM exams do I need to become an Investment Adviser?

You need NISM Series X-A (Level 1) and X-B (Level 2). However, the NISM exams alone do not give you a licence, because you must also apply to SEBI for registration. SEBI also sets rules on qualification, experience, and net worth for advisers. So check the current conditions on sebi.gov.in first.

What is needed to become a portfolio manager in India?

First, only a company or LLP can apply to SEBI. Next, the minimum net worth is ₹5 crore. Then the Principal Officer needs at least 5 years of related experience, a relevant qualification, and NISM certification. However, rules can change, so check the current SEBI Portfolio Managers Regulations before you plan this route.

Can a mutual fund distributor advise on stocks?

No. An AMFI-registered mutual fund distributor may give only basic advice that is incidental to selling mutual funds. However, advice on shares, bonds, or derivatives needs SEBI registration as an Investment Adviser. So a distributor registration does not cover stock advice. Also read the SEBI Investment Adviser FAQ for the full position.

How do I check whether a stock adviser is registered with SEBI?

First, ask for the SEBI registration number. Investment Adviser numbers start with INA, while Research Analyst numbers start with INH. Then search the number on SEBI Check, the online verification tool of SEBI. Also pay only through a verified UPI ID that ends in @valid. Finally, walk away from anyone who promises assured returns.

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Deepak Gokul, CWM®

Chartered Wealth Manager (CWM®) · NISM-Series-XVII: Retirement Adviser Certified · IRDAI Licensed Insurance Advisor · Founder, Deepak Wealth Framework

Deepak Wealth Framework Pvt Ltd — AMFI Registered Mutual Fund Distributor | ARN-328771

Deepak Gokul specialises in goal-based financial planning, child education planning, SIP investments, mutual fund advisory, and retirement planning for families across the globe. With his Chartered Wealth Manager (CWM®) certification and specialised training in retirement advisory, Deepak helps clients build long-term wealth through structured, disciplined financial planning.

📍 Pallikaranai, Chennai

Dr. Uma Rani, BPT

IRDAI Licensed Insurance Advisor (Health, General & Life) · NISM-Series-V-A Qualified (Mutual Fund Distributors) · Co-Founder, Deepak Wealth Framework

Dr. Uma Rani is individually licensed by IRDAI to advise on health, general, and life insurance. As co-founder of Deepak Wealth Framework, she helps families choose the right insurance cover alongside their investment and retirement plans.

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