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
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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
- For individuals or partnership firms: Rupees 5000;
- For Body Corporate including Limited Liability Partnerships: Rupees 50000
Registration Fee
- For individuals or partnership firms: Rupees 10000;
- 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