If you’ve recently obtained your registration as a research analyst from SEBI and are curious about the compliance requirements, congratulations, you’ve come to the right place. Firstly, congratulations on successfully completing the rigorous documentation and registration process. However, your journey does not end here. Now, you will have to comply with certain regulatory requirements to ensure that your registration remains valid and you are not facing penalties from SEBI.
This article aims to serve as an illustrative guide for SEBI registered Research Analysts on the post-registration compliances necessary to navigate this regulatory landscape successfully.
Here’s an illustrative list of post registration compliances for SEBI registered Research Analysts:
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1. Registration On SCORES Portal:
A SEBI registered Research Analyst (RA) is required to register on SEBI SCORES portal within 1 month from the date of receiving the SEBI registration number.
This platform enables investors to lodge complaints against registered intermediaries, emphasizing transparency and accountability in the financial ecosystem.
2. Display Of Brand Name/ Trade Name:
A SEBI registered RA shall prominently display on its “Portal/ Website (if any)” “Notice Board” “Display Boards” “Advertisements” “Publications” “Know Your Client (KYC) forms” and “Client Agreements” the information such as:
i. Name of the Research Analyst as registered with SEBI,
ii. Logo of the Research Analyst,
iii. Registration number of the Research Analyst as issued by SEBI,
iv. Full Address of the Research Analyst,
v. Telephone/ Contact Number(s) of the Research Analyst,
vi. Name of the Compliance Officer along with his contact number,
vii. Email Address of Grievance Officer or the Grievance Redressal Cell.
3. Display Of Disclaimer:
A SEBI registered RA shall mention on its “Portal/Website (if any)” “Notice Board” “Display Boards” “Advertisements” “Publications” “KYC forms” “Client Agreements” “Statements or Reports or any other form of Correspondence” with the client, a disclaimer that “Registration granted by SEBI, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”.
4. Website Disclosures:
a. Publication Of Investor Charter
A SEBI registered RA shall display on its Portal/ Website and Mobile Applications, an Investor Charter prepared in accordance with the SEBI guidelines.
b. Disclosure Of Investor Complaints
A SEBI registered RA shall display on its Portal/ Website and Mobile Applications, a table containing details of Investor Complaints in accordance with the SEBI guidelines.
Further, the RA shall comply with the following requirements, namely: –
i. Disclosure of details of Investor Complaints by 7th of the succeeding month in accordance with the SEBI guidelines.
ii. Display of a link or an option to lodge complaint with them directly on their websites and mobile apps.
iii. Provide a link to SEBI SCORES website or link to download SEBI SCORES mobile app shall be provided.
5. Terms And Conditions Of Service:
A SEBI registered RA shall disclose to its clients the terms and conditions on which it offers the services. The terms should be such that it gives a clear understanding of what to expect from the RA or not expect from the RA. RAs can either add these terms and conditions in a research report or display such terms and conditions on its portal/website.
6. Conduct Of Compliance Audit:
A SEBI registered RA is required to get annual compliance audit done in respect of compliance with the RA Regulations and Circulars issued thereunder. The audit shall be conducted by a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India.
7. Maintenance Of Records:
A SEBI registered RA is required to maintain the following records:
i. Research report duly signed and dated,
ii. Research recommendation provided,
iii. Rational for arriving at such recommendation,
iv. Record of public appearance.
All the records are required to be maintained either in physical or electronic form and shall be preserved for a period of 5 years.
Conclusion
Navigating the post-registration compliance landscape as a SEBI registered Research Analyst is crucial for maintaining the integrity of your operations and upholding the trust of your clients. By adhering to these requirements, RAs can ensure their practices align with regulatory expectations, thereby fostering a transparent and accountable financial ecosystem. Whether you’re a seasoned analyst or new to the field, understanding and implementing these compliance measures is essential for your professional journey in India’s financial advisory domain.
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Author Bio
Dear Sir , I wants to know about this below given information IIFL CAPITAL SERVICES LIMITED SEBI register number : INZ000164132 ( CDSL/NSDL:SEBI NO: IN-DP-185-2016 Handle by Mr Tejas mehta Senior VP running the one members wattsapp plateform and trading stocks and ipo , now i have genrated some profit but they are asking their commission after than they will release profit in my account
is this kind of service are ok and under this above number they are under control by SEBI OR NOT ,
Can we proceed with this , please advice me as per your knowledge