Master Circular for Research Analysts
Summary
This part introduces the Master Circular for Research Analysts, consolidating previous directives issued by SEBI. It supersedes the earlier Master Circular dated May 21, 2024, and rescinds specific prior circulars listed in the Appendix. The document establishes transitional provisions to ensure continuity of actions and liabilities under the rescinded regulations. This section outlines deposit maintenance requirements, revision timelines, and compliance deadlines for existing Research Analysts. It details the conditions for dual registration as both Investment Adviser and Research Analyst, emphasizing arms-length segregation of activities. Additionally, it defines eligibility criteria for part-time Research Analysts, designation of principal officers in partnership firms, appointment of independent compliance officers, and responsibilities regarding the use of AI tools. This section mandates disclosures regarding artificial intelligence usage and defines research services provided for consideration. It establishes fee ceilings for individual clients, outlines segregation requirements between research and distribution activities, and sets compliance deadlines for model portfolio gu
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In order to enable users to have access to the applicable circulars/directions at one place, this Master Circular in respect of RAs is being issued.
The provisions of such circulars issued until June 20, 2025 have been incorporated in this Master Circular, which supersedes the Master Circular for RAs dated May 21, 2025... the directions/ instructions contained in the circulars/communications listed out in the Appendix... shall stand rescinded.
Anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;
Any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;
The previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars... shall remain unaffected as if the rescinded circulars have never been rescinded.
This 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.
This circular is available on SEBI website at www.sebi.gov.in under the categories 'Legal framework –Master Circulars' and 'Info for –Research Analysts’ .
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.
As per Regulation 8 of the RA Regulations, a research analyst shall maintain a deposit of such sum, as specified by the SEBI from time to time. The deposit requirements shall be based on the maximum number of clients of RA on any day of the previous financial year...
The deposit shall be maintained with a scheduled bank marked as lien in favor of Research Analyst Administration and Supervisory body (RAASB), in the manner and form as may be specified by RAASB.
The deposit amount may be revised for any change in applicable amount of deposit, based on the maximum number of clients in the previous financial year, latest by 30th April of the subsequent financial year.
The deposit requirements shall be reviewed by SEBI from time to time.
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Source: SecMarx — Master Circular for Research Analysts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.