On October 25, 2024, the Securities and Exchange Board of India (SEBI) issued a circular (SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/148) establishing a standardized periodic reporting format for Research Analysts (RAs) and Proxy Advisers (PAs). As per Regulation 24(4) of the Research Analysts Regulations, RAs must submit specified information to SEBI, with similar provisions applicable to PAs under Regulation 23(1). SEBI has designated BSE Limited as the Research Analyst Administration and Supervisory Body (RAASB) for overseeing compliance. Following a consultative process, which included public comments on a consultation paper released in August 2024, SEBI defined reporting formats detailed in Annexures I and II of the circular. RAs and PAs are required to submit their reports every six months, with the first reporting period ending on March 31, 2025, and submissions due by April 30, 2025. The circular is effective immediately and mandates RAASB to facilitate the collection of these reports and ensure compliance among RAs.
Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/148 Dated: October 25, 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 advisers (PAs). It has been decided to specify a standardized format for periodic reporting for RAs and PAs.
2. SEBI has recognized BSE Limited as Research Analyst Administration and Supervisory Body (“RAASB”) for the purpose of administration and supervision of RAs under regulation 14 of the RA Regulations.
Consultative process for development of periodic reporting format
3. Based on the recommendations received from Industry Standards Forum (“ISF”) for RAs (including PAs), a consultation paper on ‘Periodic reporting format for Research Analysts and Proxy Advisers’ was published on August 9, 2024 and was open for public comments till August 30, 2024. Pursuant to public consultation and further discussions with industry participants, the periodic reporting formats for RAs and PAs are provided at Annexure I and Annexure II
Periodicity and timeline of reporting
4. RAs shall submit their periodic report to RAASB and PAs shall submit their periodic reports to SEBI. The periodic reports shall be submitted by RAs/PAs within 30 days from the last date of the reporting period.
5. RAs/PAs shall submit periodic report for half-yearly periods ending on September 30 and March 31 of every financial year. The first reporting period shall be half- yearly period ending on March 31, 2025 and reports thereof shall be required to be submitted by April 30, 2025. Hence, a time of around six months has been provided to RAs and PAs for submission of their first periodic report to give them sufficient time for making necessary arrangements for providing the required data.
Applicability of circular
6. This circular shall become applicable with immediate effect.
7. RAASB is directed to:
7.1. make necessary arrangements for obtaining periodic reports from RAs in the format specified in Annexure I.
7.2. bring the provisions of this circular to the notice of the RAs and also disseminate the same on its website;
7.3. make necessary amendments to the relevant Bye-laws, Guidelines, Standard Operating Procedures, Rules and Regulations for the implementation of the above decisions
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, 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.
9. 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]
