SEBI (Research Analysts) Regulations, 2014 To Be Effective from December 1st 2014
SEBI (Research Analysts) Regulations, 2014 To Be Effective from December 1st 2014
To protect investors and businesses from motivated research, the SEBI (Research Analysts) Regulations, 2014 will come into operation with effect from December 1, 2014. This set of regulations was notified on September 1st, 2014. “No person shall act as research analyst or research entity or hold itself out as research analyst unless he has obtained a certificate of registration from SEBI under these regulations unless an exemption specifically applies,” SEBI indicated in a release.
About the SEBI (Research Analysts) Regulations, 2014
SEBI (Research Analysts) Regulations, 2014/RA Regulations have been notified with effect from the start of September this year and shall come into effect from Monday, in the coming month. The RA regulations can be seen on the official SEBI website.
Provisions
SEBI (Research Analysts) Regulations, 2014 states that no person/individual shall act as a research analyst or entity or hold itself out as a research analyst firm till he or she has obtained a registration certificate from SEBI unless an exemption specifically applies. Regulation 21 of the SEBI (Research Analysts) Regulations, 2014 specifically states that persons who make public appearances or offer recommendations or opinions regarding securities or public offers via public media has to provide his name, registration status as well as financial interest details in the concerned company and he or she must comply with provisions of regulations 16 and 17.
Registration and associated work regarding research analysis will be now handled by the SEBI (Head Office/Regional Office/Local Office) under which jurisdiction the registered office address of the applicant falls. As per this, persons seeking registration under SEBI (Research Analysts) Regulations, 2014 should file their application for grant of registration with associated SEBI office.
The SEBI (Research Analysts) Regulations, 2014 prescribes the educational qualifications for the individual analyst as well as the minimum net worth. Each registration certificate is valid for around 5 years.
Those who are acting as research analysts or entities prior to the commencement of these regulations shall do so for six months from the commencement of the regulations or within the said period of 6 months till the disposal of the application. Persons outside India engaged in providing research report analysis for securities listed or proposed to be listed should enter an agreement with the registered research analyst/entity for the same. Educational qualifications for registered research analysis are a professional qualification/post graduate degree/post graduate diploma in disciplines such as economics, finance, accountancy and biases management. Graduates should have a minimum of 5 years experience in financial products/markets/securities fund/asset/portfolio management. Investment adviser,credit rating agency, asset management companies or fund managers are exempt from seeking registration under these regulations.
