The SEBI circular provides the following key points regarding ...

SEBI Issues Guidelines for Research Analysts: Registration, Compliance, Fee Caps.

January 9, 2025

Circulars     SEBI

The SEBI circular provides the following key points regarding research analysts (RAs): 1. Eligibility criteria for part-time RAs, including restrictions on providing advice/recommendations on securities without SEBI registration. 2. Compliance requirements such as appointing a compliance officer, using AI tools responsibly, maintaining research reports, disclosing terms and conditions to clients, and obtaining client consent. 3. Guidelines on fees chargeable to clients, with an annual limit of Rs. 1.51 lakh per family for individual/HUF clients. 4. Mandatory client-level segregation of research and distribution activities within an RA's group/family. 5. Guidelines for recommending model portfolios, including disclosures, methodology, benchmarking, and audit requirements. 6. KYC obligations, record maintenance of client interactions, and grievance redressal mechanisms. 7. Annual compliance audit requirements, including reporting adverse findings to SEBI and publishing the audit status on the RA's website. 8. Requirement to maintain a functional website with specified details. The circular aims to enhance transparency, mitigate conflicts of interest, and standardize practices in the research analyst industry.

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