Becoming a SEBI Registered Analyst: Your Step-by-Step Guide

This post provides all the necessary information on how to become a SEBI Registered Analyst. It explains the necessary requirements and the step-by-step process to follow. Must read the post completely for complete understanding.

SEBI Research Analyst Registration: Requirements for Eligibility

1. Qualification
2. Certification
3. Net Worth

Qualification

To be eligible for registration, the applicant must satisfy one of the following requirements:

1. Obtain a professional qualification, postgraduate degree, or postgraduate diploma in any of the following areas: finance, accounting, commerce, economics, business management, capital markets, financial services, or markets.
2. Hold a professional qualification, postgraduate degree, or postgraduate diploma recognized by the All India Council for Technical Education, NAAC, National Board of Accreditation, or any other council/board/body established under an Act of Parliament in India. Accreditation.
3. Earn a professional qualification by completing a minimum 1-year Post Graduate Program in Securities Markets from NISM (National Institute of Securities Markets).
4. Bachelor’s degree in any discipline and at least 5 years of experience in activities related to financial products, markets, securities, funds, or asset or portfolio management.

Certification

• Research Analysts who are registered with SEBI and are Partners of Research Analysts must have NISM Certification for Research Analysts, as mandated by the Board. Alternatively, they may hold any other certification accepted by the Board.

Net Worth

To gain a clear understanding of net worth, let us explore its definition and requirements:

1. Net worth represents the total value of paid-up share capital and free reserves, excluding revaluation reserves, less accumulated losses.
2. While applying, it is necessary to have a net-worth certificate issued by a Chartered Accountant (CA). The certificate should not be more than 6 months old at the time of filing the application.
3. For individual or partnership firm research analysts, the net tangible assets should exceed the value of Rs 1 lakh.
4. In case of research analysts who are body corporates or LLP firms, the net worth should not be less than Rs.25 lakhs.

SEBI Research Analyst Registration: Documents Required

While filling the application, you need to submit various documents. Some documents are required upfront, while others may be requested during the application process. The specific documents required may differ from one applicant to another. However, the following are some of the common documents that are generally required to submit and process the application:

1. Proof of identity and address, such as PAN and Aadhaar card.
2. Qualification certificates, including Graduation or Post Graduation Certificates, Experience Certificates, and NISM certificates.
3. Net Worth Certificate issued by a Chartered Accountant.
4. Income Tax Returns (ITR) for the past three years.
5. Declarations: a. Declaration of Compliance to Relevant Clauses of Chapter III of the Regulations. b. Declaration of Compliance with Schedule II of SEBI Regulations, specifying the four criteria. c. Declaration of Compliance with Regulation 7(1) of Research Analysts Regulations 2014. d. Declaration of Compliance with Regulation 7(2) of Research Analysts Regulations 2014. e. Declaration of Necessary Infrastructure Availability.
6. Details regarding infrastructure availability for research analyst services, including supporting documents. This includes information about office space, furniture, fixtures, software configuration, hardware configuration, software support, hardware support, and other relevant infrastructure facilities.
7. Standard Disclosures and internal policy and procedure documents related to the business.
8. Business plan and details of current activities.

Please note that these points are general guidelines, and specific requirements may vary depending on the nature of the application and regulatory framework. It is advised to consult the relevant authorities or guidelines for the exact document requirements in your specific case.

SEBI Research Analyst Registration: Fee Structure

While submitting your application, it is necessary to submit a non-refundable application fee. Once your registration is approved, you need to pay the registration fee to secure your registration and receive a printed certificate.

SEBI Research Analyst Registration Office Requirements Simplified

To get registered with SEBI as a Research Analyst, one has to fulfill the following office requirements:

1. A designated office space with suitable infrastructure including computers, internet connectivity and necessary software.
2. Access to a research library or relevant database to collect and research information.
3. Adequate data storage facilities for maintaining research records and documents.
4. A system to monitor and control the flow of information to ensure compliance with SEBI regulations.
5. Proper record-keeping mechanism to maintain track of research reports, recommendations and client interactions.
6. Robust information security measures to protect sensitive data and prevent unauthorized access.
7. Efficient communication channels to interact with clients, colleagues and SEBI officials as required.
8. Compliance with any additional office related guidelines or regulations specified by SEBI.

These requirements are essential for SEBI registration as Research Analyst and play a vital role in maintaining the integrity and professionalism of research activities.

Instructions for Registering as a Research Analyst (Form A)

To become a SEBI Registered Research Analyst, it is crucial to complete the Research Analyst (Form A) application.

1. The instructions are for those seeking registration as a Research Analyst (RA).
2. Fill out Form A along with necessary supporting documents to apply for registration.
3. Submit the application to the SEBI Head Office or the relevant Regional/Local Office based on your registered address.
4. Fill the application form in accordance with RA Regulations.
5. Type all fields in the form.
6. Fill all relevant fields and use “Not Applicable – NA” if any field doesn’t apply to you.
7. For additional details, provide information on separate sheets and attach them to the application form.
8. Self-attest and stamp the supporting documents.
9. Incomplete applications will be rejected, so ensure all requirements are met.
10. Review the SEBI (Research Analyst) Regulations, 2014 for eligibility criteria and registration process details.
11. In the covering letter, mention if you provided research services before these Regulations and provide relevant details.
12. As part of the registration process, submit a duly filled and signed Form A, along with the required application fees via bank draft.
13. Sign all pages of the application form, initial additional sheets, and include the name and signature of the authorized signatory.
14. Provide details and supporting documents based on your legal structure (individual, body corporate, partnership firm, LLP).
15. Research analysts must meet the minimum net worth requirement: Rs. 1 lakh for individuals/partnership firms and Rs. 25 lakh for body corporate/LLPs.
16. Net worth certificate or assets and liabilities statement should not be older than six months.
17. Provide separate declarations on your letterhead regarding compliance with qualification requirements, certification, infrastructure, and fit and proper criteria.
18. SEBI will consider all requirements and approve the application upon satisfaction. Upon payment of registration fees, SEBI will grant the certificate of registration.
19. Registration fees are Rs. 5,00,000/- for body corporate/LLPs and Rs. 10,000/- for individuals/partnership firms or proxy advisers.
20. After registration, comply with reporting requirements specified by SEBI.
21. Regularly check SEBI’s website for updates, circulars, and guidelines related to Research Analysts.
22. Notify SEBI of any material changes in the furnished details within a reasonable time period.

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