The capital markets regulator Securities Exchange Board of India (Sebi) has granted recognition for administration and supervision of research analysts (RAs) and investment advisors (IAs) to BSE Ltd for a period of five years starting July 25, 2024.
This was announced in a Sebi circular dated July 12 which also states that BSE will formulate bye-laws with respect to its activities as RAASB (Research Analyst Administration and Supervisory Body) and IAASB (Investment Adviser Administration and Supervisory Body).
BSE will, therefore, issue circulars, standard operating procedures, frequently asked questions (FAQs) to provide guidance and ensure smooth adoption of the RAASB and IAASB framework by research analysts and investment advisors.
Some of the key provisions of the Sebi’s circular:
I. Those applicants who are seeking renewal as research analysts and investment advisors will be liable to pay administrative fees as specified by RAASB/ IAASB.
II. The fees payable to Sebi by RAs/applicants seeking registration as RA have been revised by way of amendment to the RA regulations which will come into effect from July 25, 2024.
III. The total fees payable by an applicant/ RA towards application, registration and renewal to Sebi and administrative fees to RAASB for the respective period will not exceed the total fees payable prior to amendment.
IV. With respect to the grant of registration as RA for applications received before July 25, the registration fee will be received by SEBI as per the erstwhile fee structure.
V. The other terms and conditions as specified in the SEBI circular dated May 2, 2024 will continue to apply.
Meanwhile, in another news, Sebi issued warning letters to unregistered investment advisors after their activity increased significantly.
In the letters, Sebi said that it took such instances seriously and warned them to be cautious and not to indulge in such activities, failing which it would initiate action against them.
