On Feb. 17, IND SEBI issued terms, conditions for research analysts.
IND SEBI issued most important terms and conditions (MITC) for investment advisers(IAs) and research analysts (RAs); they must disclose standardized MITC to clients.
Follows IND SEBI Aug. 2024 proposed regulatory framework for advisers, #222110.
Outline of Requirements
Research analysts cannot execute trades on behalf of clients; individual/HUF client fees capped at INR 151k per annum per family for all research services; advance fees limited to one quarter period; payments must be made through the specified modes.
Research analysts must disclose conflicts of interest promptly; no guaranteed/assured return schemes permitted; reports must clarify market risks, non-assurance of returns.
Effectiveness
For existing clients, MITC disclosure required by Jun. 30, 2025; in addition, for new clients, the MITC must be incorporated into relevant service agreements immediately.
