There are some indications that SEBI may be considering a relaxation of the difficulty level in the PMS examination for distributors. This potential shift comes in response to requests from the Association of Portfolio Managers in India (APMI) to review the current course material, which has contributed to a high failure rate among candidates, according to some media reports.

In addition to lowering the exam's difficulty, the regulator might also contemplate reducing the passing marks and eliminating negative marks. Presently, the passing mark stands at 60%, with a penalty of 0.25% deducted for each incorrect answer.

Under the existing guidelines, distributors are required to pass the NISM Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination to sell PMS.

This examination aims to establish a common minimum knowledge standard for PMS distributors, enhancing the quality of distribution and related support services in the sector. NISM announced the NISM-Series-XXI-A: PMS Distributors Certification Examination through its communiqué NISM/Certification/Series-XXI-A: PMS/2021/01, dated February 16, 2021. At present, the examination comprises 80 multiple-choice questions and 3 case-based questions.