SEBI Proposes Oversight Body For Research Analysts' Administration, Supervision

SEBI said that the proposed body should not place any additional financial burden on the research analysts (RAs) and shall be fee neutral to them.

Notably, SEBI granted recognition to an entity known as the Investment Adviser Administration and Supervisory Body (IAASB), responsible for the administration and oversight of Investment Advisers (IAs).

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The Securities and Exchange Board of India (SEBI) on Tuesday proposed to recognise a body for the administration and supervision of Research Analysts (RAs). In a consultation paper, SEBI said that the proposed body should not place any additional financial burden on the research analysts (RAs) and shall be fee neutral to them.

"Considering the evolving nature of business of RAs, it is proposed that, on similar lines as IAASB, SEBI may recognise a body, designated as Research Analyst Administration and Supervisory Body (RAASB), to administer and supervise RAs and thereby extend the framework for administration and supervision to RAs as in the case of IAs," the consultation paper said. 

Notably, SEBI granted recognition to an entity known as the Investment Adviser Administration and Supervisory Body (IAASB), responsible for the administration and oversight of Investment Advisers (IAs).

"After seeking interest of eligible stock exchanges, BSE Administration & Supervision Limited (BASL), a wholly owned subsidiary of BSE Limited, has been granted recognition as IAASB for a period of three years from June 01, 2021...SEBI has provided a framework for administration and supervision of IAs inter alia specifying the role and responsibilities of IAASB," the market regulator noted. 

Adding that similar to the IA regulations, RA regulations also provide that SEBI can recognise anybody/body corporate for administration and supervision of RAs on such terms and conditions as may be specified by SEBI.

The application fee and registration fee as specified presently in the RA Regulations is proposed to be rationalised accordingly, the market regulator said.

Furthermore, a proposal has been put forth to modify regulations in a manner that includes membership in RAASB as a prerequisite for evaluating eligibility for the issuance of a registration certificate as a Recognized Association (RA). The SEBI has invited public opinions on these suggestions until September 12.