The Securities and Exchange Board of India (SEBI) has granted BSE Limited recognition as both the Research Analyst Administration and Supervisory Body (RAASB) and the Investment Adviser Administration and Supervisory Body (IAASB). This recognition, effective from July 25, 2024, marks a significant step in ensuring the effective administration and supervision of Research Analysts (RAs) and Investment Advisers (IAs) in India.
The recognition of BSE Limited as RAASB and IAASB comes in the wake of SEBI’s circular dated May 2, 2024. This move aligns with SEBI’s ongoing efforts to streamline and enhance the regulatory framework governing Research Analysts and Investment Advisers. The recognition is granted under Regulation 14 of the SEBI (Research Analysts) Regulations, 2014, and the SEBI (Investment Advisers) Regulations, 2013, for a period of five years.
As part of its new role, BSE Limited will be responsible for formulating bye-laws, Standard Operating Procedures (SOPs), and issuing circulars and Frequently Asked Questions (FAQs). These guidelines will aid in the smooth adoption and implementation of the RAASB and IAASB frameworks by RAs and IAs. This initiative aims to provide clear guidance and support to these professionals, ensuring compliance and standardization across the board.
Applicants seeking registration or renewal as RAs or IAs will be required to pay administrative fees as specified by RAASB/IAASB. These fees have been structured to remain fee neutral, ensuring that the total fees payable by applicants do not exceed the previous fee structures. This adjustment ensures that the transition to the new supervisory framework does not impose additional financial burdens on applicants.
The fees payable to SEBI by RAs or applicants seeking registration have been revised, effective from July 25, 2024. Details of the amended fee structure are available on the SEBI website. For applications received before this date, the registration fees will be processed under the previous fee structure. This phased approach ensures a smooth transition for all stakeholders involved.
The other terms and conditions specified in SEBI’s earlier circular dated May 2, 2024, will continue to apply. This continuity ensures that the regulatory environment remains stable and predictable for RAs and IAs, facilitating compliance and adherence to established norms.
The recognition of BSE Limited as RAASB and IAASB by SEBI is a pivotal development in the regulatory landscape for Research Analysts and Investment Advisers in India. By entrusting BSE with the responsibility of administration and supervision, SEBI aims to enhance the effectiveness of regulatory oversight and ensure the protection of investors’ interests. The formulation of clear guidelines, fee structures, and support mechanisms will contribute to a more robust and transparent market environment. This initiative underscores SEBI’s commitment to promoting the development of the securities market while safeguarding the interests of investors.
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Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2024/101 Dated: July 12, 2024
All Registered Investment Advisers
All Registered Research Analysts
BSE Limited (BSE)
BSE Administration & Supervision Limited (BASL)
Dear Sir/Madam,
Subject: Recognition of BSE Limited as Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body (IAASB)
1. In pursuance of SEBI circular SEBI/HO/MI RSD/MIRSD-SEC-3/P/CIR/2024/34 dated May 2, 2024, BSE Limited1, has been granted recognition under Regulation 14 of the ‘RA Regulations’2 and ‘IA Regulations’3 for administration and supervision of Research Analysts (‘RAs’) and Investment Advisers (‘IAs’) respectively as RAASB4 and IAASB5 for a period of five years starting from July 25, 2024.
Formulation of bye-laws, SOPs, FAQs etc. by RAASB/IAASB
2. BSE shall formulate bye-laws with respect to its activities as RAASB and IAASB and shall issue circulars, Standard Operating Procedures (SOPs), Frequently Asked Questions (FAQs), etc. to provide guidance and ensure smooth adoption of the RAASB and IAASB framework by RAs and IAs.
Administrative fees payable to RAASB/IAASB
3. Applicants seeking registration/renewal as RA/IA shall be liable to pay administrative fees, as specified by RAASB/IAASB.
4. The fees payable to SEBI by RAs/applicants seeking registration as RA have been revised by way of amendment to the RA Regulations, coming into effect from July 25, 2024. Details of the same are available at https://taxguru.in/sebi/sebi-research-analysts-amendment-regulations-2024.html.
5. The total fees payable by an applicant/RA towards application, registration and renewal to SEBI and administrative fees to RAASB for the respective period shall not exceed the total fees payable prior to abovementioned amendment. The fee structure shall thus be fee neutral to the applicants/RAs.
6. In respect of grant of registration as RA for applications received before July 25, 2024, the registration fee shall be received by SEBI as per the erstwhile fee
7. The other terms and conditions as specified in the SEBI circular SEB I/HO/MI RSD/MIRSD-SEC-3/P/CI R/2024/34 dated May 2, 2024 shall continue to apply.
8. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with regulation 14 of RA Regulations and IA Regulations to protect the interests of investors in securities market and to promote the development of, and to regulate the securities market.
9. This circular is available on SEBI website at sebi.gov.in under the categories “Legal > Circulars”, “Info For > Investment Advisers” and “Info For > Research Analysts”.
Aradhana Verma
General Manager
+91-22-26449633
E-mail: aradhanad@sebi.gov.in
1Under Regulation 38A of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018
2RA Regulations- SEBI (Research Analysts) Regulations, 2014
3IA Regulations- SEBI (Investment Advisers) Regulations, 2013
4RAASB- Research Analyst Administration and Supervisory Body
5IAASB- Investment Adviser Administration and Supervisory Body
