SEBI amends rules for investment advisors, research analysts to ensure ease of doing biz

(lowered) the application fees as well as registration fees for research analysts

Market regulator SEBI has paved the way for the deemed enlistment of existing registered investment advisors/research analysts under a proposed framework.

This dispensation will be for anybody who may be approved or recognised by it for the administration and supervision of these professionals.

For this purpose, SEBI on Friday brought in separate amendments to its regulations on investment advisors and research analysts.

This latest move by SEBI is expected to provide ease of doing business and also ensure smooth operationalisation of the Research Analyst Administration and Supervisory Body (RAASB) and the Investment Advisers Administration and Supervisory Body (IAASB) framework, sources said.

This is also significant as in March this year, the SEBI Board approved a proposal to recognise a “stock exchange” as RAASB and IAASB.

SEBI has also revamped (lowered) the application fees and registration fees for research analysts. The fees payable by research analysts to SEBI for keeping its certificate of registration in force have also been reduced.

APPLICATION FEES

The application fee for research analysts has been pegged at ₹2,000 for individuals and partnership firms; for proxy firms, the application fee is ₹2,000 and for body corporates, including limited liability partnerships, the fee has been pegged at ₹20,000.

The registration fee for research analysts has been pegged at ₹3,000 for individuals and partnership firms; ₹3,000 for proxy advisory firms and ₹30,000 for body corporates, including limited liability partnerships. For registration extension every five years, the fee has been pegged at ₹1,000 for individuals and partnership firms; ₹1,000 for proxy advisory firms and ₹5,000 for body corporates including LLPs.

APPLICABLE DATE

These regulatory changes, including the new fee structure for research analysts, will come into e¢ect on the ninetieth day from April 26, which was when the changes were published in the o©cial gazette, SEBI said.

In India, SEBI regulates the registration of both investment advisors and research analysts.

The market for financial advice in India is highly competitive.

Registered investment advisors face competition from traditional banks and brokerage firms, which o¢er portfolio management services and investment advice.

Also, many investors prefer a do-it-yourself approach, which has raised demand for online investment platforms, robo advisors besides discount brokers.