The Securities and Exchange Board of India (SEBI) has introduced regulations for individuals and firms who wish to register as Part-Time Research Analysts (RA). Here's a simple breakdown of the rules and eligibility criteria:
Who Can Register as a Part-Time Research Analyst?A Part-Time Research Analyst is someone who:
• Is engaged in another business or employment unrelated to securities.
• Does not handle client funds or provide financial/investment advice.
Eligible applicants include:• Members of ICAI, ICSI, or ICMAI providing their statutory services.
• Insurance agents licensed by IRDAI.
• Professors or teachers, provided they have a No Objection Certificate (NOC) from their employer.
• Professionals such as doctors, lawyers, or architects.
• Individuals engaged in education businesses, as long as they do not violate SEBI's
Intermediaries Regulations.Qualification & Compliance Requirements
• Same qualification and certification requirements as full-time RAs.
• Must maintain a clear separation between RA activities and other business/employment.
• Must provide a disclaimer (minimum font size 10) on invoices and services, stating that non-RA services are not under SEBI's purview.
• Required to disclose all other business activities and ensure no conflict of interest
With RA services.
Who is NOT Eligible for Part-Time RA Registration?• Anyone engaged in financial advisory services related to gold, real estate, cryptocurrency, or other assets.
• Those making investment-related performance claims without SEBI approval.
Who Must Register as a Part-Time RA?
• Chartered Accountants (CAs) giving tax planning advice that includes securities as an asset class do not require RA registration.
• However, if a CA provides specific security recommendations (even as part of tax planning), they must register as a Part-Time RA.
Takeaways:
• SEBI allows professionals to work as Part-Time RAs if they follow strict compliance guidelines.
• It is essential to maintain transparency, disclose business activities, and adhere to SEBI regulations.
• If your profession involves securities recommendations, ensure that you register as required.
For further details, always refer to SEBI's official guidelines or consult a compliance expert.
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