Sebi proposes easing compliance norms for research analysts on call records

Sebi has proposed exempting research analysts from maintaining call records of interactions with institutional investors while retaining norms for retail clients

The Securities and Exchange Board of India (Sebi) on Monday proposed easing compliance requirements for research analysts (RAs) by exempting them from maintaining call records of interactions with institutional investors.

 

Under existing rules, RAs are required to preserve records of all communications with clients — including call recordings, emails, SMSes, and other verifiable documents — for a period of five years.

 

The proposal follows representations from market participants, who argued that institutional investors are sophisticated entities with the expertise and resources to independently assess research inputs, evaluate investment opportunities, and undertake due diligence before acting on research reports.

 

Sebi noted that the requirement to maintain call recordings was introduced to safeguard investor interests and enable supervisory oversight. However, the regulator said a relaxation could be considered for interactions with institutional investors, while retaining the existing record-keeping requirements for retail clients.

 

RAs will continue to be required to maintain complete records, including call interactions, for communications with retail investors.