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TMI BlogSecurities and Exchange Board of India (Research Analysts) (Third Amendment) Regulations, 2024.X X X X Extracts X X X X X X X X Extracts X X X X ..... ses shall be inserted, namely: - "(fa) "consideration" means any form of economic benefit including non-cash benefit, received or receivable, directly or indirectly, in any form whether from client or otherwise for providing research services; (fb) "family of an individual research analyst" shall include individual research analyst, spouse, children and parents; (fc) "family of client" shall include individual client, dependent spouse, dependent children and dependent parents;" (2) after clause (n) and before clause (o), the following clauses shall be inserted, namely: - "(na) "non-individual" means a body corporate including a limited liability partnership and a partnership firm; (nb) "other business activity or employment" means such business activity or employment which is not related to securities and: a. it does not involve handling or managing of money or funds of client or person; or b. it is not related to providing advice or recommendation to any client or person in respect of any products or assets for investment purposes; (nc) "partner" means partner of the partnership firm or a limited liability partnership who renders research services on behalf of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of sub clause (i) shall also be applicable to the principal officer of a non-individual entity registered both as a research analyst and an investment adviser but engaged in no other business activity." (4) in clause (t), after the words "independent research analyst" and before the words "or individual research analyst", the words and symbol "or part-time research analyst", shall be inserted. (5) clause (u) shall be substituted with the following: "(u) "research analyst" means a person who, for consideration, is engaged in the business of providing research services and includes a part-time research analyst;" (6) after clause (w) and before clause (x), the following clause shall be inserted, namely: - "(wa) "research services" means the following services provided by research analyst: i. preparation or publication of the research report or content of the research report; or ii. providing or issuing research report or research analysis; or iii. making 'buy/sell/hold' recommendation; or iv. giving price target or stop loss target; or v. offering an opinion concerning public offer, or vi. recommending model portfolio; or vii. providing trading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied", the words "and all persons associated with research services" shall be inserted; (6) in clause (vi), the words "capital adequacy" shall be substituted with the word "deposit"; (7) in clause (vii), after the words "research analyst" and before the words "and partners of the applicant", the words and symbol ", persons associated with research services" shall be inserted. IV. regulation 7 shall be substituted with the following, namely: - "Qualification and certification requirement. 7. (1) An individual research analyst or a principal officer of a non-individual research analyst registered under these regulations, individuals employed as research analyst and partners of a research analyst, if any, engaged in research services shall have the following minimum qualifications, at all times: (i) A professional qualification or graduate degree or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance, actuarial science or other financial services from a university or institution recognized by the Central Government or any State Government or a recognised foreign university or ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n investment adviser may also be granted certificate of registration as a research analyst, subject to such terms and conditions as the Board may deem fit and appropriate." VII. in regulation 13, (1) in clause (iii), (a) the symbol "." shall be substituted with the symbol ":"; (b) the following proviso shall be inserted, namely: - "Provided that part-time research analyst registered under these regulations shall use the term 'part-time research analyst' in all correspondences with its clients." (2) after clause (iii), the following clause shall be inserted, namely: - "(iv) the number of clients of a part-time research analyst shall not exceed seventy-five in total at any point of time." VIII. in regulation 14, after sub-regulation (1) and before sub-regulation (2), the following sub-regulation shall be inserted namely: "(1A) Notwithstanding anything contained in regulation 14, the administration and supervision of the proxy advisers shall entirely vest with the Board." IX. in regulation 16, (1) in sub-regulation (2), after the words and symbol "Independent research analysts," and before the words "individuals employed", the words and symbols "part-time researc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gister or record containing list of the clients along with client's PAN, the date and nature of the research service, details of the products/securities for which research service was provided and fee/consideration, if any charged/received for such research service; (vii) records of communication including emails, call recordings etc. with all clients including prospective clients in such manner as may be specified; (viii) the terms and conditions of research services disclosed to the clients and the consent of the client thereon." (2) in sub-regulation (3), after the words "Institute of Company Secretaries of India" and before the symbol ".", the words "or Institute of Cost Accountants of India and submit the report of the same in such manner as may be specified by the Board" shall be inserted. XV. regulation 26 shall be substituted with the following, namely: - "Appointment of compliance officer. 26. (1) A non-individual research analyst or research entity shall appoint either: (i) a compliance officer; or (ii) an independent professional who is a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India or Institute of Cos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest of a non-individual research analyst. (4) Non-individual research analyst or research entity shall maintain an arm's length relationship between its activities as research analyst and distributor by providing research services through a separately identifiable department or division. (5) Compliance and monitoring process for client segregation at group or family level shall be in accordance with the guidelines specified by the Board." XVII. in regulation 29, (1) in sub-regulation (1), the words "their representatives" shall be substituted with the words and symbols "partners, directors, principal officer and persons associated with research services"; (2) in sub-regulation (3), after the words and symbol "director, partner' and before the words "or person responsible for", the words and symbol ", principal officer and person associated with research services" shall be inserted. XVIII. in regulation 31, (1) the words "requiring research analyst or research entity not to provide research recommendation for a particular period", appearing after the words "or the investors including" shall be omitted; (2) the existing clause (i) and (ii) shall be renumbered as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication and qualification requirements under the regulation 7 at all times including obtaining fresh certification before expiry of existing certification." v. after clause (f) and before clause (g), the following clause shall be inserted, namely: - "(fa) Where the applicant is employed and has applied for registration as a part-time research analyst, the applicant shall enclose a no objection certificate from the employer. In case of change in employment, the applicant shall provide no objection certificate from the new employer." vi. clause (h) shall be substituted with the following, namely: - "(h) Networth details or certified copy of assets and liabilities statement." (c) in item (5), after clause (f) and before clause (g), the following clause shall be inserted, namely: - "(fa) In case of registration as part-time research analyst, a declaration that it shall maintain arms-length relationship between its business activity as research analyst and other business activity and shall ensure that its business activities as research analyst are clearly segregated from its other business activity or employment." (d) Item 6 shall be renumbered as item 7. (e) After item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a (Regulatory Sandbox) (Amendment) Regulations, 2021 vide notification No. SEBI/LAD-NRO/GN/2021/30.
e. 17th January 2023, by the Securities and Exchange Board of India (Change in Control in Intermediaries) (Amendment) Regulations, 2023 vide notification No. SEBI/LADNRO/GN/2023/115.
f. 7th February, 2023 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2023 vide notification No. SEBI/LADNRO/ GN/2023/121.
g. 3rd July 2023 by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023 vide notification No. SEBI/LAD-NRO/GN/2023/137.
h. 17th August 2023 by the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 vide notification No. SEBI/LADNRO/GN/2023/146.
i. 26th April 2024 by the Securities and Exchange Board of India (Research Analysts) (Amendment) Regulations, 2024 vide notification No. SEBI/LAD-NRO/GN/2024/170.
j. 19th August, 2024 by the Securities and Exchange Board of India (Research Analysts) (Second Amendment) Regulations, 2024 vide notification No. SEBI/LAD-NRO/GN/2024/199 X X X X Extracts X X X X X X X X Extracts X X X X
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