An Overview of SEBI Research Analyst Registration

In India, a lot of investors invest in stock market via direct stocks or through mutual funds. However, researching a stock or a company or a commodity is not easy due to a variety of information available from different sources. Sometimes the information is raw & needs to be analysed using various financial tools to be able to make an investment decision. That is where Research Analyst plays an important role. In short, a Research Analyst analyses a security including a stock/mutual fund or a derivative & gives buy/sell/hold recommendation. However, the views/recommendations of Research Analysts may not be independent & hence there could be a potential conflict of interest. To handle this conflict & to ensure independence of Research Analysts, the regulator felt the requirement of the activities of Research Analysts. Hence, SEBI introduced the SEBI (Research Analyst) Regulations, 2014.

So, if anyone want to become a Research Analyst in India, then it is mandatory to get Research Analyst Registration under SEBI, because without this registration, no one can practice as a Research Analyst in India. So, if you have anyone queries regarding SEBI Research Analyst Registration, then you can connect with our experts.

Who is a Research Analyst?

It’s a primarily responsible for the preparation of the Research Report or making buy/hold/sell recommendations or giving price target or offer an opinion regarding public offer regarding securities that are listed or to be listed on a stock exchange. The analyst may/may not have the designation of Research Analyst. The definition of Research Analyst also includes:

• Entities like an LLP (Limited Liability Partnership) or a Company which issue Research Report of Research Analysis on listed securities like mutual funds, stocks, etc.
• Any individual who reports directly/indirectly to such a RA in connection with publication or preparation of Research Report. For example, an individual who is helping an RA to collect information about a particular stock/mutual fund.

New guidelines for the enlistment of entities as Research Analysts.

Last year, SEBI announced new guidelines for the enlistment of entities as Research Analysts. All currently SEBI registered Research Analysts and new applicants seeking Research Analyst Registration must obtain their SEBI Registration Certificate and follow the guidelines, regulations, byelaws, directives & circulars issued by SEBI. Moreover, all existing SEBI Registered Ras who hold memberships with BASL with automatically be enlisted on the Exchange starting 25^th of July 2024. From this date, applicants applying for RA Registration can submit their application via BSE online portal.

What are the Benefits of SEBI Registered Research Analyst in India?

The following are the benefits of registering as a Research Analyst with SEBI:

• Studying & problem-solving skills: An experienced Research Analyst has complete knowledge, skills & insight of the financial sector which help in examining problems arising in the system.
• Quality Research: The quality of research conducted by SEBI Research Analyst has high standards for assessment & disclosure of risk.
• Access to Information: SEBI Research Analyst are authorized to access information that is not available in the public domain, it helps investors make valuable & necessary changes in the financial business.
• Help in Managing Investment Portfolio: A SEBI registered Research Analyst helps in managing the investment portfolio by conducting proper research & analysis of market stock/security.

Eligibility Criteria for Research Analyst Registration under SEBI

To become SEBI Registered Research Analyst, the following criteria must be met:

The 2 main criteria to check are:

• Qualification & Certification requirements;
• Capital Adequacy Requirements.

Qualification & Certification requirements

1. First, you must have a professional qualification/PG degree or PG Diploma in Business Management, Finance, economics, Commerce, financial services, capital markets from an institution or university recognised by any State Government or Central Government or a recognised foreign university or institution or association or,

2. Professional qualification or PG diploma/Degree which is accredited by All Indian Council for Technical Education, National Assessment & Accreditation Council or National Board of Accreditation or any other council/body/board set up under an Act of Parliament in India or;

3. A graduate in any discipline with working experience of at least 5 years in activities relating to advice in financial products/securities/fund/asset/portfolio management.

4. You should have a NISM Certification for RA (Research Analyst) specified by the Board or other certification recognized by the Board from time to time. NISM Certification has come out with the examination for RA and the examination is known as NISM Series XV: Research Analyst Certification Examination. If you have any of the following degrees, you must meet the qualification requirements:

• CA;
• CS;
• Cost Accountant;
• MBA in Finance from a recognised university or institute;
• Com;
• CFA or Chartered Financial Analyst;
• Masters Degree in Economics;
• PG in Banking & Finance.

5. In case of an LLP or a Company, the Research Analyst & the partners respectively who will be engaged in research and analysis, have to fulfil the criteria. So, if a Company’s director is not the person who is going to be involved in research analysis, he or she need not fulfil the eligibility criteria

Capital Adequacy Requirement

• For individuals including proprietorships & partnerships the net tangible assets should be not less than Rs. 1 lakh;
• The items to be included in the net worth certificate can be assets like laptop, house, bank balance, FDs, vehicle & Shares, mutual funds & other investments. Liabilities will include car loan, home loan, education loan, etc.
• For LLPs & companies, the net-worth should be not less than Rs. 25 lakhs.

Some Important Points to Know During Filing Form A for Research Analyst Registration in India

The Following are some important points to know during SEBI Research Analyst Registration:

Download/Print Form A: You need to download or print this form because this form is very important for the SEBI Research Analyst Registration.

Choose Correct SEBI Office: Know the right SEBI Office based on your registered office address. You application must be submitted to the Head Office/any relevant local or regional office.

Know the applicant: The applicant means any individual or entity looking for Research Analyst Registration. Ensure tha you know whether you are applying as an individual, Partnership, LLP or a Company.

Complete all sections in the Form: Make sure that all the important points in the Form are filled out. In case, if a section doesn’t apply to your situation, write “NA” or “Not Applicable” to avoid leaving blanks.

Use extra sheets if necessary: If you require more space or sheets for certain answers, you can use extra sheets.

Attach Your Documents: You need to attach all the documents along with application form, also these documents should be signed & stamped by an authorized person, because this adds credibility to your application & ensure compliance with SEBI requirements.

Double Check Your Application: You must double check your application including all the necessary documents to facilitate a smooth review process.

Cover Letter: You need to write a cover letter that outlines:

• Whether you have provided research services prior to the application;
• Details about those services;
• Your intent to register as a RA providing research services.

Documentation:

• A signed Form A;
• A bank draft for the application fee made out to “The Securities and Exchange Board of India”. And this fee is non-refundable.

Sign All Pages: Make sure that the authorized signatory signs every page of the application. The last page should also include their name & initial to affirm the submission.

Consider your Legal Structure: File your application as per your legal status like whether you are an individual, an LLP, a corporation, or a partnership.

Net-Worth Requirements: Make sure the compliance with the minimum net worth requirements:

• Partnerships & individual must have a net worth of at least Rs. 1 lakh;
• LLPs & Corporations must have a net worth of Rs. 25 lakhs;
• Also, include a recent net worth certificate or statement of assets & liabilities (not older than 6 months).

Declaration on Letterhead: You need to provide the following declaration on your letterhead (signed & dated):

• A declaration confirming that all employed RA meet the qualifications criteria set by SEBI;
• Assurance of compliance with current certification requirements for Research Analyst (AR);
• Also, a statement confirming that you & your associates are fit for the registration as per SEBI Regulations;
• A Commitment to follow the Chapter III of the RA Regulations;
• Confirmation that you have all the infrastructure to conduct Research Activities.

Documents Required for Research Analyst Registration

For Body Corporate/Company:

Basic Information:

• 15-digit GST number or relevant declaration.
• PAN card of the body corporate/company.

Address Proof:

• If owned: Sales Deed or Recent Utility Bill.
• If rented: Registered Rent Agreement or Bank Statement/Passbook.

Additional Requirements for Residential Address:

• NOC from the owner.
• Ownership Proof (Sales Deed/Recent Utility Bill).

Address proof should be in the name of the Body Corporate/Company.

• Company Incorporation Documents:
• Compliance Officer Documents: Self-attested PAN and Aadhaar.

1. Certificate of Incorporation (COI).

2. First page of MOA.

Registration with Stock Exchange:

• If registered: Provide relevant details.
• If not: Declaration on the company's letterhead signed by an authorized signatory.

Shareholder Details:

• On the company’s letterhead.

Personal Details of Authorized Persons:

• PAN copy as identity proof.
• Aadhaar Card or Passport as address proof.
• Qualification proof (course completion certificates as per SEBI RA Regulations, 2014).
• Experience proof (certificates on employer's letterhead as per SEBI RA Regulations, 2014).
• Certification proof (valid certificate as per SEBI RA Regulations, 2014).
• Masked Aadhaar or Aadhaar consent letter if Aadhaar is used.

Financial and Business Details:

• Assets and liabilities statement certified by a Chartered Accountant (not older than 6 months).
• Copy of ITR/Form 16 for the last 3 years.
• Business plan detailing proposed research analyst services.

Internal Policies and Disclosures:

• Documents addressing conflict of interest.
• Standard disclosures document.

Infrastructure Details: Office space, equipment, furniture, communication facilities, research capacity, and software.

Disputes:

1. Details of all settled/pending disputes in the last 5 years.

2. Declaration if no disputes exist.

For Individual/Sole Proprietor:

• Proprietor Name Format: Must include “Individual Name (Proprietor: Name of the Proprietorship Firm).”
• Basic Information:

1. Ghumasta Certificate or Certificate under Shops and Establishments Act (if applicable).

2. 15-digit GST number or relevant declaration.

3. PAN card of the applicant.

Address Proof:

1. If owned: Sales Deed or Recent Utility Bill.

2. If rented:

• Registered Rent Agreement or Aadhaar with Consent Letter/Passport/Bank Statement/Passbook.
• NOC from the owner (for residential address).
• Ownership Proof (Sales Deed/Recent Utility Bill).

Personal Details:

• PAN copy as identity proof.
• Aadhaar Card or Passport as address proof.
• Qualification proof (course completion certificates as per SEBI RA Regulations, 2014).
• Experience proof (certificates on employer's letterhead as per SEBI RA Regulations, 2014).
• Certification proof (valid certificate as per SEBI RA Regulations, 2014).
• Masked Aadhaar or Aadhaar consent letter if Aadhaar is used.

Financial and Business Details:

• Assets and liabilities statement certified by a Chartered Accountant (not older than 6 months).
• Copy of ITR/Form 16 for the last 3 years.
• Details of proposed research services.
• Other relevant information about research services.

Internal Policies and Disclosures:

1. Conflict of interest policies and procedures.

2. Declaration regarding infrastructure availability.

• Infrastructure Details: Office space, equipment, furniture, communication facilities, research capacity, and software.
• Disputes:

1. Details of all settled/pending disputes in the last 5 years.

2. Declaration if no disputes exist.

For Partnership Firms/LLPs:

Basic Information:

• Registered Partnership Deed (for partnership firms).
• LLP Agreement (for LLPs).
• 15-digit GST number or relevant declaration.
• PAN card of the partnership firm/LLP.

Address Proof:

1. If owned: Sales Deed or Recent Utility Bill.

2. If rented:

• Registered Rent Agreement or Bank Statement/Passbook.
• NOC from the owner (for residential address).
• Ownership Proof (Sales Deed/Recent Utility Bill).

Compliance Officer Documents: Self-attested PAN and Aadhaar.

Registration with Stock Exchange:

• If registered: Provide relevant details.
• If not: Declaration on the firm/LLP’s letterhead signed by an authorized signatory.

Ownership Details: Beneficial ownership pattern.

Personal Details of Partners:

• PAN copy as identity proof.
• Aadhaar Card or Passport as address proof.
• Qualification proof (course completion certificates as per SEBI RA Regulations, 2014).
• Experience proof (certificates on employer's letterhead as per SEBI RA Regulations, 2014).
• Certification proof (valid certificate as per SEBI RA Regulations, 2014).
• Masked Aadhaar or Aadhaar consent letter if Aadhaar is used.

Financial and Business Details:

• Assets and liabilities statement certified by a Chartered Accountant (not older than 6 months).
• Copy of ITR/Form 16 for the last 3 years.
• Business plan detailing proposed research analyst services.

Internal Policies and Disclosures:

• Documents addressing conflict of interest.
• Standard disclosures document.

Infrastructure Details: Office space, equipment, furniture, communication facilities, research capacity, and software.

Disputes:

• Details of all settled/pending disputes in the last 5 years.
• Declaration if no disputes exist.

Online Process for Research Analyst Registration

The following is the step-by-step process for Research Analyst Registration online:

Research Analyst who wants to apply for the SEBI Research Analyst Registration need to make an online application through the SEBI’s portal for intermediaries.

Step 1: Make the payment of application fee: Make payment of application fees either through DD or NEFT/RTGS and the fee is non-refundable. The DD should be in favour of “The Securities and Exchange Board of India” payable at Mumbai.

Below is the current schedule for fees:

Step 2: Fill the details of the applicant:

• Visit the online portal.
• Then, click on Self-Registration and start filling the application details. Mention the applicant’s details. So, for company’s application, mention the company’s name & the PAN;
• For Role required you should select Research Analyst;
• For applicant Category – if you are a firm then select Individual Research Firm and if you are applying for our company/LLP select Research Entity.
• Mention all the details of the contact individual and ensure that you mention the correct email id & mobile number. The email id will be used for sending the user id & the activation link;
• For “Designation” column mention “Director” if the contact details of the Director are mentioned or mention “Partner if the contact details of Partner are mentioned. If you are applying as an individual mention “individual” & if you want your Proprietorship firm to get registered mention “Proprietor”.
• Mention the registered office address and ensure that you have mentioned the correct address as all the SEBI correspondence will be sent to this address. Based on your address, your application will be processed further by either SEBI’s head office or the respective regional offices.

Step 3: Fill in the payment details: If you are going to make the payment of application fees through demand draft you need to keep the DD ready before filing the application details. The details of the DD are required to be mentioned in the online application.

• Check that the “Principal Amount” to be paid is mentioned;
• Select the payment mode;
• Mention the bank account details and press the add button at the bottom of the page and all the details of the payment will be displayed in the table on the top;
• Once you fill in all the details, press “Submit” button at the bottom of the page.

Step 4: Receipt of email from SEBI on registration

Step 5: After the above step, you will get an email receipt from SEBI for activation link & login id.

Step 6: Filling in the application details for Registration as Research Analyst.

Step 7: After the application is submitted to SEBI, it will send a communication within 1 month. The communication can be in a form of a letter or email, either requesting more details/approval of your application.

Step 8: Once SEBI approves the application, you need to pay the registration fees online or through a demand draft.

Step 9: Once SEBI confirms receipt of fees, it will send the Registration Certificate to the address mentioned in the application.

Note: It takes atleast 2 months for this enture process depending on the time taken by SEBI to respond.

Post- Registration Compliance

Once you are registered as a Research Analyst then you must have to complete the Post-Registration Compliance as prescribed by SEBI. The following are the mandatory post-Registration compliance:

1. Obligations for Report: The obligation for Research Report is to create a genuine research report that must include the following details:

• Must be correct and reliable information;
• Must define the terms used in making recommendations;
• Must explain the meaning of each rating (for rating systems) & the considerations upon which such ratings are based;
• You also have to include a graph of daily closing prices for 3 years.

2. Annual Audit

3. Maintenance of Records

4. Compliance Reports: As per SEBI Regulations, 2014, A Research Analyst must periodically conduct compliance reports to SEBI.

Why Whizseed for Research Analyst Registration?

If you want to apply for SEBI Research Analyst Registration, filing an application on you won can be very complicated and time consuming due to all the documentation & paperwork. If you connect with us, you registration process will be smoother & more efficient. Here how we can help you:

• Consultation: To know you requirements, our team will offer personalised consulation & guide you through the complete process of SEBi Research Analyst Registration
• Initial Stage Advice: Our consultant will conduct an initial assessment of your eligibility & prepare for the registration. On the basis of this, our experts will give you some advice so that you can meet the necessary criteria & reduce the risk of having your application rejected by SEBI.
• Documentation: Before applying, it is important to have a correct and complete documentation. Whizseed, with its team will help you in preparing & organizing all the necessary documentation as per the SEBI standards.
• Application: Our team will handle the complete application process on your behalf. You can rest assured that your form will be submitted correctly in prescribed time. We have more than a decade of expertise when it comes to SEBI procedures.

By choosing us, you will benefit from our support, expert guidance & dedicated service. We will ensure that the entire SEBI Research Analyst Registration journey is straightforward& seamless for you.