SEBI Proposes Eased Rules for Research Analysts on Institutional Calls
SEBI has proposed relaxing rules for research analysts by no longer requiring them to record calls with institutional clients. The move aims to reduce the compliance burden while maintaining records like emails and SMS. Retail client call recording will remain mandatory.
The Securities and Exchange Board of India (SEBI) on Monday suggested easing regulations for research analysts, specifically concerning call recordings with institutional clients. This move aims to lessen the compliance burden and enhance business efficiency.
In a recent consultation paper, SEBI proposed that research analysts and firms should no longer be obligated to maintain call recordings of their interactions with institutional investors. However, they must continue to preserve other forms of communications like emails and SMS. The proposed easing will apply solely to institutional investors, while the requirement for maintaining comprehensive records, including call recordings, will persist for retail clients.
SEBI's proposal is informed by industry representations emphasizing that institutional investors possess the expertise to independently assess research information. The regulator underscores that institutional clients are aware of their legal rights and available protections. SEBI plans to amend the Research Analysts Regulations, 2014 to implement these changes and seeks public feedback by June 8.
(With inputs from agencies.)
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