Building capacity across the securities market value chain

Sashi Krishnan, Director, National Institute of Securities Markets (NISM) brings with him nearly 40 years of experience in pension fund management, life insurance, and mutual fund industries, with significant expertise in equity and debt markets. In this interview, he talks about the vision of NISM, the importance of certification in securities markets, and the way it is marching ahead with investor education.

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Q. Tell us something about the mandates of NISM.

The purpose of NISM is capacity creation for the securities market ecosystem, and we do a few main things as part of that process. We conduct long-term academic programmes to create capacity for the securities market and certify professionals in the ecosystem. We also conduct a number of management development programmes for entry level to senior level executives from both private and government entities. Through our investor education programmes, we reach out to citizens of this country to make them financially literate.


Q. With markets becoming more complex and technology-driven, how frequently must certification frameworks evolve to remain relevant? And what drives that evolution?

Certification frameworks need to be updated every three months as they need to keep up with changing regulations. Our certification remains valid for three years. After the three-year period, professionals working in the securities market need to come back to us for Continuous Professional Education (CPE) programmes. These can be attended online or physically for a period of six hours. Post that, they give an examination. This helps keep professionals updated on the goings on during the intervening years since they last got themselves certified.

Q. NISM certifications are mandatory qualifications under regulatory requirements. How do you ensure these certifications go beyond compliance and raise professional standards across the securities market?

We certify close to 450,000 to 500,000 people every year. These include individuals who want to work in the securities market, as well as students and teachers. Our mandate is to educate them on the nuances of the securities market. We offer certifications for 32 disciplines in the market. For all professionals who are into Portfolio Management, Mutual Fund Distribution, etc., these certifications are mandated. Beyond this, we have the SEBI Investor Awareness Test (SIAT). This certification is offered to any investor free of cost. We certify over 200,000 investors every year.

Q. Beyond certifications, NISM also offers long-term academic programmes in on-campus and hybrid formats. What gap in financial education are these programmes designed to address?

There is a shortage of skilled professionals in the securities market ecosystem, and to address this gap, NISM offers a Postgraduate Diploma in Securities Markets, an LLM in Securities Law, and a range of on-campus and online courses. For instance, there is a shortage of skilled professionals in the regulatory ecosystem, be it in compliance-related activities or supervision-related ones. Our one-year Master of Laws (LLM) programme in collaboration with the Maharashtra National Law University, equips students to become familiar with Securities Law. The other big gap is between academia and industry. At NISM, we try to bridge this gap through immersive learning. Our labs provide real-world experience on how markets work, which includes a simulation lab as well.

Q. From entry-level professionals to the C-suite, how are corporate training programmes evolving to address strategic leadership in a volatile and tech-driven market environment?

We cater to all, from entry level to mid-level and senior management. We conduct programmes for people at the board level, trustees in mutual funds, and the like. We bring industry professionals, regulators, and academicians together on the same platform for wide-ranging discussions on issues, picking contemporary topics and partnering with industry associations too. We have done close to 150 management development programmes this year, serving around 15,000 professionals.

Q. Retail participation in Indian markets has surged. What more needs to be done on the investor education front to ensure informed participation rather than speculative activity?

Investor education is an important pillar for us. From financial education to financial well-being, we need to be part of this entire journey at NISM. Our objective is to deliver on-ground education in all 800 districts of the country. Today, we cater to 250-300 districts. The other way forward is digital and to this end, we are doing a number of webinars for free. We have also done 28 masterclasses so far. Our physical programmes touch over 200,000 people, but in terms of digital programmes, we touch up to four million people.