MUMBAI, NOVEMBER 28:
SEBI’s research analyst regulations to curb unscrupulous advice doled out to investors via various media such as television channels, newspapers and periodicals, SMS /e-mail alerts, chat rooms, discussion forums and social media come into force on December 1. The Securities and Exchange Board of India regulations were notified on September 1.
The regulations mandate that a research analyst needs to obtain a certificate of registration of SEBI before expressing his opinion about securities. In addition, “any person who makes public appearance or makes a recommendation or offers an opinion concerning securities or public offers through public media has to disclose his name, registration status and details of financial interest in the subject company and he shall comply with the provisions of Regulations 16 and 17.” The new norms also cover ‘proxy’ advisors or those providing advisory services similar to research analysts.
Persons with a professional qualification or post-graduate degree or post-graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets provided by UGC recognised university or autonomous institute under the Government of India or a graduate in any discipline with an experience of at least five years in activities relating to financial products are eligible for SEBI registration.