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SEBI Research Analysts Regulation defines Research Analyst as a person who is responsible for the preparation or publication of the research report content or who provides research report or gives price target or offers an opinion concerning public offer with respect to securities listed or to be listed in a stock exchange regardless of such person having the job title of research analyst and includes entities engaged in the issuance of research report or research analysis. If you register with SEBI as an individual, then the term Independent Research Analyst is used, and when you register as non-individual then the term Research Entity is used. Let’s discuss SEBI Research Analyst Registration in detail.
It refers to any written or electric communication, including research analysis or research recommendation or an opinion concerning securities or public offer which serves as a basis for investment decision.
The eligibility criteria can be categorised into the following:
In order to obtain registration, the applicant needs to have:
The research analysts registered with SEBI and partners of research analyst should be having a NISM certification for research analysts as required by the Board or other certification recognized by the Board.
Net Worth/Capital Adequacy
Before looking at the net worth requirements, let’s understand the meaning of net worth.
Net worth refers to the aggregate value of paid-up share capital plus free reserves, not including the reserves created out of revaluation, reduced by the aggregate value of accumulated losses.
You must have a Net-worth certificate from a CA and such certificate at the time of filing application should not be more than 6 months old.
Further, a research analyst who is an individual or partnership firm should have a net tangible assets of value more than 1 lakh rupees.
A research analyst who is a body corporate or is a LLP firm should have a net worth of not less than 25 Lakh rupees.
At the time of filing application, you will have to submit some documents also. Few of the documents are submitted with the application and some documents may be asked for during the processing of the application. The documents required may vary from one applicant to the other. However, some common documents to be filed during application submission and processing are as follows:
While filing the application, the applicant needs to pay a non-refundable application fee. Once the registration is approved, the applicant also needs to pay the Registration Fee to secure the registration and to obtain the printed certificate. Please find the fee structure below-
|Applicant Category||Application Fees (in INR)||Registration Fees (in INR)|
|Individuals and Partnership Firms||Five Thousand Rupees||Ten Thousand Rupees|
|LLPs and Body Corporate||Fifty Thousand Rupees||Five Lakh Rupees|
|Proxy Advisers||Five Thousand Rupees||Ten Thousand Rupees|
The procedure is as follows:
The applicant applying for SEBI Research Analyst Registration should meet all eligibility requirements in terms of Qualification, Net worth requirements and Certification. Once you have all these requirements in place, then only it is advisable to proceed with your application filing process.
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