SEBI issues Master Circular for Research Analysts to enable comprehensive access for users

On 21-05-2024, the Securities and Exchange Board of India (‘SEBI’) issued the Master Circular for Research Analysts to enable the users to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Key Points:

1. This Master Circular supersedes the Master Circular for Research Analysts dated 15-06-2023 which was a compilation of all relevant circulars issued by SEBI that were operational as of 15-06-2023.

2. All provisions of the guidelines and directions issued to the Research Analysts by way of circulars and advisories as of 15-05-2024 have been incorporated in this Master Circular.

3. The circulars/advisories that have been rescinded to the extent that they relate to Research Analysts, as mentioned in the Appendix of the Master Circular are as follows:

   • Circular dated 23-03-2011 — Unauthentic news circulated by SEBI Registered Market Intermediaries through various modes of communication

   • Circular dated 24-03-2011 — Addendum to Circular no. Cir/ISD/1/2011

   • Circular dated 15-12-2011 — Guidelines on Outsourcing of Activities by Intermediaries

   • Circular dated 27-08-2013 — General Guidelines for dealing with Conflicts of Interest of Intermediaries and their Associated Persons in Securities Market

   • Circular dated 28-08-2014 — Information regarding Grievance Redressal Mechanism

   • Guidelines dated 03-08-2020 — Procedural Guidelines for Proxy Advisors

   • Communication dated 04-08-2020 — Grievance Resolution between listed entities and proxy advisors

   • Guidelines dated 27-08-2020 — Procedural Guidelines for Proxy Advisors’ — Extension of implementation timeline

   • Communication dated 27-08-2020 — Grievance Resolution between listed entities and proxy advisers’ — Extension of timeline for implementation

   • Communication dated 03-11-2020 — Advisory for Financial Sector Organizations regarding Software as a Service (SaaS) based solutions

   • Guidelines dated 31-12-2020 — Procedural Guidelines for Proxy Advisors

   • Communication dated 13-12-2021 — Publishing of Investor Charter and disclosure of Investor Complaints by Research Analysts on their websites/mobile applications

   • Communication dated 25-02-2022 — Approach to securities market data access and terms of usage of data provided by data sources in Indian securities market

   • Communication dated 28-11-2022 — Procedure for seeking prior approval for change in control

   • Communication dated 05-04-2023 — Advertisement code for Investment Advisers and Research Analysts

   • Communication dated 06-04-2023 — Usage of brand name/trade name by Investment Advisers and Research Analysts

   • Framework dated 02-05-2024 — Framework for administration and supervision of Research Analysts and Investment Advisers.

4. Inspite of the rescission:

   • Anything done/ action taken/ purported to have been done/ taken under the rescinded circulars prior to such rescission, will be deemed to have been done/ taken under the corresponding provisions of this Master Circular.

   • Any application made to SEBI under the rescinded circulars, prior to such rescission, and pending before it will be deemed to have been made under the corresponding provisions of this Master Circular.

   • The previous operation of the rescinded circulars will remain unaffected as if the rescinded circulars have never been rescinded.