Sebi puts curbs on analysts

In a move to safeguard Indian markets from any manipulative research reports including by foreign entities, Sebi has notified norms for ‘ research analysts’ to ward off any conflict of interest in their activities. Foreign entities acting as research analysts for Indian markets or India- listed firms would need to tie- up with a registered entity in India, while domestic players would also be subjected to strict disclosures and scrutiny.

The new norms, which would also cover ‘ proxy’ advisors or those providing advisory services similar to research analysts, have been framed in the wake of various instances of ‘ mischievous’ research reports having been circulated among the investors in the past to manipulate the overall market trends or share price of individual companies. These new norms would be called the Sebi ( Research Analysts) Regulations, 2014.