The Securities and Exchange Board of India (SEBI) has issued a draft circular for public comments, proposing a standardized periodic reporting format for Research Analysts (RAs) and Proxy Advisers (PAs). As per Regulation 24(4) of the SEBI (Research Analysts) Regulations, 2014, RAs are required to submit information and reports to SEBI as specified. Since PAs are also registered under the same regulations, they are subject to similar reporting requirements. SEBI has recognized the Research Analyst Administration and Supervisory Body (RAASB) to oversee the administration and supervision of these entities. The draft circular outlines a half-yearly reporting format for RAs and PAs, covering periods ending on September 30 and March 31 of each financial year. RAASB is tasked with implementing this reporting system and ensuring compliance. Public comments on the draft circular are invited until August 30, 2024, through SEBI’s official website or via email. The circular, once finalized, will be applicable immediately to ensure the protection of investor interests and the proper regulation of the securities market. The draft document and further details are available on SEBI’s website under the “Legal > Circulars” section.
DRAFT CIRCULAR FOR PUBLIC COMMENTS
Periodic reporting format for Research Analysts and Proxy Advisers
Aug 09, 2024 | Reports : Reports for Public Comments
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Background
1. In terms of Regulation 24(4) of Chapter III of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014 (RA Regulations), Research Analysts (RAs) are required to furnish to SEBI, information and reports as may be specified by SEBI from time to time. Further, in terms of Regulation 23(1) of Chapter III of the RA Regulations, all the provisions of Chapter II, III, IV, V and VI shall apply mutatis mutandis to the proxy adviser.
2. SEBI has recognized Research Analyst Administration and Supervisory Body (RAASB) for the purpose of administration and supervision of RAs under regulation 14 of the RA Regulations. As the Proxy Advisers (PAs) are registered under the RA Regulations, they shall also come under the purview of RAASB. It is proposed to specify a standardized reporting format in which RAs and PAs shall submit information to RAASB on periodic basis.
Public Comments:
Draft Circular on “Periodic reporting format for Research Analysts and Proxy Advisers” is placed at Annexure A. Public comments are invited on the Draft Circular.
The comments/ suggestions should be submitted latest by August 30, 2024, through the following link: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPubl icComments=yes
In case of any technical issue in submitting your comment through web based public comments form, you may write to [email protected] with the subject: “Public comments on Draft Circular – “Periodic reporting format for Research Analysts and Proxy Advisers”
Encl: Annexure-A
Annexure A
CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2024/XX
August XX, 2024
To
All Research Analysts
All Proxy Advisers
Research Analyst Administration and Supervisory Body (RAASB)
Madam/Sir,
Subject: Periodic reporting format for Research Analysts and Proxy Advisers
1. In terms of Regulation 24(4) of Chapter III of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014 (“RA Regulations”), Research Analysts (RAs) are required to furnish to SEBI, information and reports as may be specified by SEBI from time to time. Further, in terms of Regulation 23(1) of Chapter III of the RA Regulations, all the provisions of Chapter II, III, IV, V and VI shall apply mutatis mutandis to the proxy adviser.
2. SEBI has recognized Research Analyst Administration and Supervisory Body (“RAASB”) for the purpose of administration and supervision of RAs under regulation 14 of the RA Regulations. As the Proxy Advisers (PAs) are registered under the RA Regulations, they shall also come under the purview of RAASB. It has been decided to specify a standardized format for periodic reporting for RAs and PAs.
Consultative process for development of periodic reporting format
3. Based on the recommendations received from Industry Standards Forum (“ISF”) for RAs (including PAs), a standardized periodic reporting format for submission of information by RAs/PAs, pertaining to their activities, has been prepared. The periodic reporting formats for RAs and PAs are enclosed as Annexure I and Annexure II.
Periodicity of reporting
4. RAs/PAs shall submit periodic report for half-yearly periods ending on September 30 and March 31 of every financial year.
Timelines for submission of periodic reports
5. RAASB is directed to make necessary arrangements for obtaining periodic reports from RAs/PAs in the format specified in Annexure I and Annexure II and shall issue a circular to RAs/PAs in this regard, within thirty days from the date of issuance of this circular. RAASB shall also specify the timeline for submission of periodic reports by RAs/PAs in the said circular.
Applicability of circular
6. This circular shall become applicable with immediate effect.
7. 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, Regulation 23(1) and Regulation 24(4) of the RA Regulations to protect the interests of investors in securities market and to promote the development of, and to regulate the securities market.
8. This circular is available on SEBI website at sebi.gov.in under the categories “Legal > Circulars”, “Info For > Research Analysts”.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022-26449633
E-mail: [email protected]
