Master Circular for Research Analysts
Summary
This section establishes a Master Circular to consolidate all previous circulars regarding Research Analysts into a single document for ease of access. It rescinds all prior directions contained in the listed appendix circulars while preserving the legal validity of actions and liabilities incurred under those rescinded rules. The issuance is grounded in the powers conferred by Section 11(1) of the SEBI Act, 1992, to protect investor interests and regulate the securities market. This section outlines the deposit requirements for research analysts based on client volume and specifies the permissible forms of such deposits. It details the eligibility criteria and operational constraints for individuals or firms seeking registration as part-time research analysts. Additionally, it establishes rules for partnership firms designating a principal officer and appointing an independent compliance officer. This section outlines certification requirements for compliance officers and mandates disclosures regarding the use of Artificial Intelligence in research services. It defines 'research services provided for consideration' and establishes fee ceilings for individual clients while allowing
Text
In order to enable Research Analysts and other market stakeholders to have access to all applicable Circulars in the subject matter at one place, this Master Circular is issued.
With the issuance of this Master Circular, all directions/instructions contained in the Circulars listed out in the Appendix to this Master Circular shall stand rescinded to the extent they relate to Research Analysts.
Anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular.
Any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular.
The previous operation of the rescinded circulars or anything done or suffered thereunder... shall not be affected by such rescission and shall be enforceable as if the rescinded circulars had continued to be in force.
This Master Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.
It is clarified that the revised qualification requirements shall not be required to existing individual RAs, Principal officer of non-individual RAs or research entity... However, they shall hold NISM certifications and comply with other conditions specified under Regulation 7(3) of the RA Regulations.
Post Graduate Program in the Securities Market (Research Analysis) from NISM... has been provided as an eligible qualification for an Individual research analyst or principal officer...
Applicants who meet the qualification criteria provided under Regulation 7(1)(b) shall not be required to obtain initial entry level certification... However... such persons shall be required to obtain relevant renewal certification from NISM.
A research analyst shall maintain a deposit specified by SEBI in the form of units of liquid/overnight mutual fund or scheduled bank deposit, scaled by maximum clients: up to 150 (₹1 lakh), 151-300 (₹2 lakh), 301-1,000 (₹5 lakhs), 1,001+ (₹10 lakhs).
The deposit shall be marked as lien in favour of Research Analyst Administration and Supervisory body (RAASB) in the manner specified by RAASB.
The deposit amount may be revised for changes in applicable amounts based on the maximum number of clients in the previous financial year, latest by 30th April of the subsequent financial year.
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Master Circular for Research Analysts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.