Overview of SEBI Research Analyst

A Research Analyst is defined under Securities & Exchange Board of India (Research Analysts) Regulations 2014, it defines that a Research Analyst (RA) as an individual who is mainly responsible for the analysis, preparation, management, and publication of the Research Report, making recommendations for sell, hold, or buy, giving a price target/offering an opinion regarding public offer. So, to ensure the integrity & autonomy of Research Analysts, in 2024, SEBI introduced the Research Analyst Regulations and these regulations govern entities & individuals that issue research reports/perform research analysis on securities.

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.

New Guidelines for the Enlistment of Entities as Research Analysts in India

Recently, Bombay Stock Exchange (BSE) 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

According to the Regulation 7 & 8 of the Research Analysts Regulations 2014 to become SEBI Registered RA, the following criteria must be met:

1) To qualify for the Registration, you should have one of the following:

• A professional degree or PG Degree in finance, business management, economic development or a related field from a recognized institution.
• An NISM Certificate which involves passing the NISM Series XV (Research Analyst Certification Exam)

Note:

• It is not mandatory to have NISM Certificate, if you fulfil the first point criteria as mentioned above. However, it is recommended to have this Certification for smooth & ease registration process.
• Some recognised qualifications required for Research Analyst Registration include, CA, CS, Chartered Financial Analyst (CFA) & MBA in Finance.

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:

(a) Whether you have provided research services prior to the application;

(b) Details about those services;

(c) Your intent to register as a RA providing research services.

• Documentation:

(a) A signed Form A;

(b) 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:

(a) Partnerships & individual must have a net worth of at least Rs. 1 lakh;

(b) LLPs & Corporations must have a net worth of Rs. 25 lakhs;

(c) 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) A declaration confirming that all employed RA meet the qualifications criteria set by SEBI;

(b) Assurance of compliance with current certification requirements for Research Analyst (AR);

(c) Also, a statement confirming that you & your associates are fit for the registration as per SEBI Regulations;

(d) A Commitment to follow the Chapter III of the RA Regulations;

(e) Confirmation that you have all the infrastructure to conduct Research Activities.

Documents Required for Research Analyst Registration

1) For Body Corporate/Company:

• Basic Information:

(a) 15-digit GST number or relevant declaration.

(b) PAN card of the body corporate/company.

• Address Proof:

(a) If owned: Sales Deed or Recent Utility Bill.

(b) If rented: Registered Rent Agreement or Bank Statement/Passbook.

• Additional Requirements for Residential Address:

(a) NOC from the owner.

(b) Ownership Proof (Sales Deed/Recent Utility Bill).

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

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

(a) Certificate of Incorporation (COI).

(b) First page of MOA.

• Registration with Stock Exchange:

(a) If registered: Provide relevant details.

(b) If not: Declaration on the company's letterhead signed by an authorized signatory.

• Shareholder Details:

(a) On the company’s letterhead.

• Personal Details of Authorized Persons:

(a) PAN copy as identity proof.

(b) Aadhaar Card or Passport as address proof.

(c) Qualification proof (course completion certificates as per SEBI RA Regulations, 2014).

(d) Experience proof (certificates on employer's letterhead as per SEBI RA Regulations, 2014).

(e) Certification proof (valid certificate as per SEBI RA Regulations, 2014).

(f) Masked Aadhaar or Aadhaar consent letter if Aadhaar is used.

• Financial and Business Details:

(a) Assets and liabilities statement certified by a Chartered Accountant (not older than 6 months).

(b) Copy of ITR/Form 16 for the last 3 years.

(c) Business plan detailing proposed research analyst services.

• Internal Policies and Disclosures:

(a) Documents addressing conflict of interest.

(b) Standard disclosures document.

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

(a) Details of all settled/pending disputes in the last 5 years.

(b) Declaration if no disputes exist.

For Individual/Sole Proprietor:

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

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

(b) 15-digit GST number or relevant declaration.

(c) PAN card of the applicant.

• Address Proof:

(a) If owned: Sales Deed or Recent Utility Bill.

(b) If rented:

(1) Registered Rent Agreement or Aadhaar with Consent Letter/Passport/Bank Statement/Passbook.

(2) NOC from the owner (for residential address).

(3) Ownership Proof (Sales Deed/Recent Utility Bill).

• Personal Details:

(a) PAN copy as identity proof.

(b) Aadhaar Card or Passport as address proof.

(c) Qualification proof (course completion certificates as per SEBI RA Regulations, 2014).

(d) Experience proof (certificates on employer's letterhead as per SEBI RA Regulations, 2014).

(e) Certification proof (valid certificate as per SEBI RA Regulations, 2014).

(f) Masked Aadhaar or Aadhaar consent letter if Aadhaar is used.

• Financial and Business Details:

(a) Assets and liabilities statement certified by a Chartered Accountant (not older than 6 months).

(b) Copy of ITR/Form 16 for the last 3 years.

(c) Details of proposed research services.

(d) Other relevant information about research services.

• Internal Policies and Disclosures:

(a) Conflict of interest policies and procedures.

(b) Declaration regarding infrastructure availability.

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

(a) Details of all settled/pending disputes in the last 5 years.

(b) Declaration if no disputes exist.

For Partnership Firms/LLPs:

• Basic Information:

(a) Registered Partnership Deed (for partnership firms).

(b) LLP Agreement (for LLPs).

(c) 15-digit GST number or relevant declaration.

(d) PAN card of the partnership firm/LLP.

• Address Proof:

(a) If owned: Sales Deed or Recent Utility Bill.

(b) If rented:

(1) Registered Rent Agreement or Bank Statement/Passbook.

(2) NOC from the owner (for residential address).

(3) Ownership Proof (Sales Deed/Recent Utility Bill).

• Compliance Officer Documents: Self-attested PAN and Aadhaar.
• Registration with Stock Exchange:

(a) If registered: Provide relevant details.

(b) If not: Declaration on the firm/LLP’s letterhead signed by an authorized signatory.

• Ownership Details: Beneficial ownership pattern.
• Personal Details of Partners:

(a) PAN copy as identity proof.

(b) Aadhaar Card or Passport as address proof.

(c) Qualification proof (course completion certificates as per SEBI RA Regulations, 2014).

(d) Experience proof (certificates on employer's letterhead as per SEBI RA Regulations, 2014).

(e) Certification proof (valid certificate as per SEBI RA Regulations, 2014).

(f) Masked Aadhaar or Aadhaar consent letter if Aadhaar is used.

• Financial and Business Details:

(a) Assets and liabilities statement certified by a Chartered Accountant (not older than 6 months).

(b) Copy of ITR/Form 16 for the last 3 years.

(c) Business plan detailing proposed research analyst services.

• Internal Policies and Disclosures:

(a) Documents addressing conflict of interest.

(b) Standard disclosures document.

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

(a) Details of all settled/pending disputes in the last 5 years.

(b) Declaration if no disputes exist.

Online Process for Research Analyst Registration on BSE portal

The following is the step-by-step process for Research Analyst Registration on BSE Portal:

1) Create an Account:

• Visit membershipraia.bseindia.com.
• Click on Register and set up your account by creating a username and password.

2) Log In:

• Use your login credentials to access the portal.

3) Start a New Application:

• Select New Application from the menu.
• Choose your Application Type and Entity Type from the dropdown list.

4) Fill Out the Application:

• The application has 12 tabs to complete. Save your progress in each tab as you go.

5) Applicant Details Tab:

• Enter your details and upload the required documents.
• Click Save as Draft and then Save & Next to proceed.
• A green tick will appear once the tab is complete.

6) Address Details Tab:

• Select the Address Type (e.g., Correspondence) and fill in the details.
• Click Add after filling each address.
• Once done, click Next to move forward.

7) Other Details Tab:

• Enter the necessary details and upload the required documents.

8) Personnel Details Tab (For Non-Individual Entities):

• For partnerships, companies, or body corporates, provide personnel details based on the type.
• Upload documents and click Save as Draft, then Save & Next.

9) Personnel Details Tab (For Individual Entities):

• If applying as an individual, fill out the fields as instructed.
• Save and proceed like non-individual entities.

10) Associate Companies Tab:

• Fill in the information about associate companies.
• Upload the necessary documents and move to the next step.

11) Shareholder Details Tab:

• Provide details of major shareholders and attach the required documents.

12) Other Registration Details Tab:

• Select Yes or No based on your details.
• Upload the required documents and proceed.

13) Infrastructure Facilities Tab:

• Enter details about infrastructure items and upload supporting documents.

14) Other Information Tab:

• Answer Yes or No for each field.
• Select the status from the dropdown and upload relevant attachments.

15) Change in Control Tab:

• Provide details, select Yes or No as applicable, and attach supporting documents.

16) Questions Tab:

• Answer the questions and upload the required documents.

17) Bank Details Tab:

• Enter the details of your Primary Bank Account and set it as the default.
• To add more accounts, click Add & Save, then proceed.

18) Declaration Tab:

• Read the declarations carefully.
• Select the I Agree checkbox and click Submit to complete the application.

19) Check Application Status:

• Go to the My Application tab to view your application status and other details.

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.