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How to Become SEBI Registered Research Analyst

No person shall act as a research analyst or research entity or hold itself out as a research analyst unless he has obtained a certificate of registration from the SEBI under (RESEARCH ANALYSTS) Regulations, 2014

Who is Research Analyst

Research analyst” means a person who is primarily responsible for

  • preparation or publication of the content of the research report; or
  • providing research report; or
  • making ‘buy/sell/hold’ recommendation; or iv.giving price target; or
  • offering an opinion concerning public offer,with respect to securities that are listed or to be listed in a stock exchange, whether or not any such person has the job title of ‘research analyst’ and includes any other entities engaged in issuance of research report or research analysis.
  • Explanation.-The term also includes any associated person who reports directly or indirectly to such a research analyst in connection with activities provided above
Research Analyst

What is Research Report

“research report” means any written or electronic communication that includes research analysis or research recommendation or an opinion concerning securities or public offer, providing a basis for investment decision and does not include the following communications:

  • comments on general trends in the securities market;
  • discussions on the broad-based indices;
  • commentaries on economic, political or market conditions;
  • periodic reports or other communications prepared for unit holders of mutual fund or alternative investment fund or clients of portfolio managers and investment advisers;
  • internal communications that are not given to current or prospective clients;
  • communications that constitute offer documents or prospectus that are circulated as per regulations made by the Board;
  • statistical summaries of financial data of the companies;
  • technical analysis relating to the demand and supply in a sector or the index;
  • any other communication which the Board may specify from time to time

Qualification and certification requirement for Research analyst

  • A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets provided by:
    • a university which is recognized by University Grants Commission or by any other commission/council/board/body established under an Act of Parliament in India for the purpose; or
    • an institute/association affiliated with such university; or
    • an institute/ association/university established by the central government or state government; or
    • autonomous institute falling under administrative control of Government of India; or
  • professional qualification or post-graduate degree or post graduate diploma which is accredited by All Indian Council for Technical Education, National Assessment and Accreditation Council or National Board of Accreditation or any other council/board/body set up under an Act of Parliament in India for the purpose; or
  • a professional qualification by completing a Post Graduate Program in the Securities Market (Research Analysis) from NISM of a duration not less than one year; or
  • a graduate in any discipline with an experience of at least five years in activities relating to financial products or markets or securities or fund or asset or portfolio management and
  • An individual registered as research analyst , individuals employed as research analyst and partners of a research analyst, if any, shall have, at all times, a NISM certification for research analysts as specified by the SEBI or other certification recognized by the SEBI from time to time

Capital Adequacy Requirement for Research Analyst

  • A research analyst who is individual or partnership firm shall have net tangible assets of value not less than one lakh rupees
  • A research analyst who is body corporate or limited liability partnership firm shall have a networth of not less than twenty five lakh rupees

“net worth” means the aggregate value of paid-up share capital plus free reserves (excluding reserves created out of revaluation) reduced by the aggregate value of accumulated losses.

Step By Step Procedure for Registration as Research Analyst With SEBI

  • Fullfill Experiance and Education Qualfication reequirements as mentioned above
  • Pass required NISM Examination
  • Ensure to have Net Tengible assets of Rs. 1 Lakh for Individual /partnership Firm or Networth of Rs. 25 Lakh for Companies /LLP
  • Application to SEBI for Research Analyst Registration inForm A
  • Payment of Application fee
  • Reply to Clearification raised by SEBI
  • Approval by SEBI
  • Payment of Registration Fee
  • Issue of Certificate of Registration by SEBI

Fee for SEBI Research Analyst Registration

Application Fee

  1. For individuals or partnership firms: Rupees 5000;
  2. For Body Corporate including Limited Liability Partnerships: Rupees 50000

Registration Fee

  1. For individuals or partnership firms: Rupees 10000;
  2. For Body Corporate including Limited Liability Partnerships: Rupees 500000

Research Services Details in Application

  • Details of the proposed research services
  • Details about internal policies and procedures to effectively address conflict of interest
  • Details about the standard disclosures to be provided
  • Any other relevant information pertaining to research services provided

Office Requirements for SEBI Research Analyst Registration

  • Details of office space, office equipment, furniture and fixtures, communication facilities, research capacity, research software for undertaking research analysis.
  • Declaration that the applicant has the necessary infrastructure to effectively discharge the activities of research analyst.

Documents required for Research Analyst Application (Individual Applicant)

  • Copy of PAN and Aadhar
  • Last 3 Years Income Tax Return
  • Education qualifcation documents
  • NISM Certificates
  • Experiance Certificate
  • Networth Certificate
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How to Become SEBI Registered Investment Advisor

If you are providing Investment Advisory Services in India, you must be registered as an Investment Advisor with the Securities and Exchange Board of India (SEBI ) as per SEBI ( Investment Advisors) Regulations, 2013, Investment Advisors regulations provides that no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the SEBI in accordance with SEBI Investment Advisors Regulations “SEBI Registered Investment Advisor”.

Also, no person, while dealing in the distribution of securities, shall use the nomenclature “Independent Financial Advisor, IFA or Wealth Adviser or any other similar name” unless registered with the SEBI as Investment Adviser

SEBI Registered Investment Advisor

What Is Investment Advice

Means advice relating to investing in, purchasing, selling, or otherwise dealing in securities or investment products, and advice on investment portfolio containing securities or investment products, whether written, oral, or through any other means of communication for the benefit of the client and shall include financial planning

Provided that investment advice given through newspaper, magazines, any electronic or broadcasting or telecommunications medium, which is widely available to the public shall not be considered as investment advice for the purpose of these regulations

Who is Investment Advisor

Any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes any person who holds out himself as an investment adviser, by whatever name called

Who can Apply for “SEBI Registered Investment Advisor”

  • Individual
  • Partnership Firm
  • LLP
  • Company

Qualification and Certification Requirement for “SEBI Registered Investment Advisor”

  • A professional qualification or post-graduate degree or post graduate diploma (minimum two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or aninstitution recognized by the Central Government or any State Government or a recognised foreign university or institution or association or a professional qualification by completing a Post Graduate Program in the Securities Market (Investment Advisory)from NISM of a duration not less than one year or a professional qualification by obtaining a CFA Charter from the CFA Institute
  • An experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management
  • Persons associated with investment advice shall meet the following minimum qualifications, at all times -(i) a professional qualification as provided in clause (a) of sub-regulation (1) of regulation 7; and(ii) an experience of atleast two years in activities relating to advice in financial products or securities or fund or asset or portfolio management
  • An individualinvestment adviseror principal officer of a non-individual investment adviser, registered under these regulations and persons associated with investment advice shall have, at all times a certification on financial planning or fund or asset or portfolio management or investment advisory services-(a)from NISM; or(b)from any other organization or institution including Financial Planning Standards BoardofIndia or any recognized stock exchange in India provided such certification is accredited by NISM:Provided that fresh certification must be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements

Networth Requirement for SEBI Investment Advisors Registration “SEBI Registered Investment Advisor”

CategoryNetworth
Individual5 Lakh
Non-Individual50 Lakh

Meaning of Networth :

This means the aggregate value of paid-up share capital plus free reserves (excluding reserves created out of revaluation) is reduced by the aggregate value of accumulated losses, deferred expenditure not written off, including miscellaneous expenses not written off ( Applicable in Case of Company)

Fee for SEBI Investment Advisors Registration “SEBI Registered Investment Advisor”

Application fee

Individuals and
firms
Rs. 2000

For Body Corporate
including
Limited
Liability Partnerships
Rs. 10000

Registration fee

For individuals and firmsRs. 3000
For body Corporate including
Limited Liability Partnerships
Rs. 15000