Regulation 3 - Obligation to obtain certificate - Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007

CHAPTER II CERTIFICATION OF ASSOCIATED PERSONS Obligation to obtain certificate 3. (1) The Board may by notification in the Official Gazette require such categories of associated persons to obtain requisite certificate for engagement or employment with such classes of intermediaries and from such date as may be specified in the notification: Provided that an associated person employed or engaged by an intermediary prior to the date specified by the Board may continue to be employed or engaged by the intermediary if he obtains the certificate within two years from the said date. (2) An associated person on being employed or engaged by an intermediary on or after the date specified by the Board shall obtain the certificate within one year from the date of being employed or engaged by the intermediary. (3) An associated person who, as on the date specified by the Board, holds a certificate for a category as recognized by the Board shall not be required to obtain a fresh certificate for the same category during the validity of such certificate. (4) The Board for the purpose of issuing notification under sub regulations (1) and (2) shall take into consideration: (a) whether the associated person as part of his work or operation deals or interacts with the investors, issuers or clients of intermediaries; (b) whether the associated person deals with assets or funds of investor or clients; (c) whether the associated person handles redressal of investor grievances; (d) whether the associated person is responsible for internal control or risk management; (e) whether the associated person is responsible for compliance of any rules or regulations; (f) whether the associated person is engaged in activities that have a bearing on operational risk of the intermediary.