Sebi Boosts Social Impact Assessment Framework, Makes NISM Certification Mandatory

The Securities and Exchange Board of India (Sebi) has directed Social Impact Assessors to obtain a mandatory certification from the National Institute of Securities Markets (NISM), in line with the regulator’s provisions. With this move, Sebi aims to standardise qualification requirements and strengthen credibility across different Sebi-regulated entities.

In a circular dated April 13, the market regulator said individuals who are acting as Social Impact Assessors must qualify for the NISM Series XXIII – Social Impact Assessors Certification Examination and have a valid certificate. “It is hereby specified that the Social Impact Assessor shall obtain the following certification of the National Institute of Securities Market – NISM Series XXIII – Social Impact Assessors Certification Examination,” Sebi said.

Furthermore, Sebi also directed assessors to renew their certification as required. “For renewal of the certification, the Social Impact Assessor shall, either again obtain the ‘NISM Series XXIII – Social Impact Assessors Certification Examination’ certification or successfully complete the ‘NISM Series XXIII - Social Impact Assessors Certification eCPE Program’ of NISM,” the circular added. The circular came into effect immediately.

Sebi said that the circular was issued with the aim to “protect the interests of investors and to promote the development of, and to regulate the securities market and shall come into effect immediately.”

Who is a Social Impact Assessor?

Social Impact Assessors are professionals registered with a self-regulatory organisation (SRO). These SROs are affiliated with institutions such as the Institute of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India (ICMAI), or the Institute of Company Secretaries of India (ICSI). Social impact assessors are needed to complete a certificate programme organised by NISM, in order to ensure every assessor has a uniform baseline understanding of regulations, along with technical competence.

Social impact assessors play a key rose in the social finance ecosystem of the country, especially related to listed entities on the Social Stock Exchange (SSE). These assessors have the responsibility to independently evaluate, analyse, measure and validate possible social outcomes and the impact of such firms on the exchange. They also assess the effectiveness of different projects, along with verification of fund utilisation and ensuring that social objectives stated by the companies are being met credibly and effectively.