The Securities and Exchange Board of India (SEBI) has made some important changes regarding the supervision of Research Analysts (RAs) and Investment Advisers (IAs). These changes aim to streamline the management and administration of these professionals to better protect investors and promote a healthier securities market. Here’s a simplified breakdown of what you need to know:
Q1: What is the key change introduced by SEBI?
A: SEBI has recognized BSE Ltd (Bombay Stock Exchange) as a supervisory body for Research Analysts (RAs) and Investment Advisers (IAs). This means BSE will now oversee the management and administration of these professionals.
Q2: What is the duration of this new role for BSE?
A: BSE has been granted this role for a period of five years, starting from July 25, 2024.
Q3: What will BSE’s new responsibilities include?
A: As part of its new role, BSE will:
Establish bye-laws.
Create Standard Operating Procedures (SOPs).
Develop Frequently Asked Questions (FAQs). These measures will guide and facilitate the smooth adoption of the new supervisory frameworks by RAs and IAs.
Q4: What are RAASB and IAASB?
A: RAASB: Research Analyst Administration and Supervisory Body.
IAASB: Investment Adviser Administration and Supervisory Body. These are the names of the supervisory bodies BSE will operate as, for RAs and IAs respectively.
Q5: What about the fees for registration and renewal?
A: Applicants seeking registration or renewal as RAs or IAs will need to pay administrative fees specified by RAASB and IAASB. The total fees payable to SEBI and RAASB will not exceed the previous fee structure, ensuring no additional financial burden.
Here's the entire SEBI® process for research analyst:
Q6: When will the new fee structure take effect?
A: The revised fees for RA registration will be effective from July 25, 2024.
Q7: What if an application for RA registration is submitted before July 25, 2024?
A: Applications received before July 25, 2024, will adhere to the previous fee structure.
Q8: Why has SEBI made these changes?
A: These changes are aimed at protecting the interests of investors in the securities market and promoting the development and regulation of the securities market.
Summary
SEBI's new circular recognizes BSE Ltd as a supervisory body for overseeing Research Analysts and Investment Advisers. This recognition, valid for five years starting from July 25, 2024, includes the establishment of bye-laws, SOPs, and FAQs by BSE to guide these professionals. Administrative fees will be specified by the new supervisory bodies, RAASB and IAASB, but the total fee structure will remain the same to avoid any additional financial burden. These changes aim to enhance investor protection and market regulation.
For more detailed information, you can refer to the full circular on the SEBI website under the sections for Legal Circulars, Investment Advisers, and Research Analysts.
We hope this helps you understand the latest updates from SEBI in a simple and clear manner. If you have any further questions, feel free to reach out!
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