Any person who wishes to act as a Research Analyst must apply to SEBI for registration before undertaking any activity as Research Analyst. In order to proceed with the application you must ensure that you are falling under the purview of SEBI (Research Analyst) Regulations, 2014 (RA Regulations). Otherwise, you are not required to apply.
In case you fall under the purview of SEBI Registration, the next step should be to ensure that you fulfill the mandatory requirements before making an application with SEBI. If you don’t meet them you cannot proceed with the application.
The following are the criteria that should be fulfilled before making an application with SEBI:
1. Qualification:
First, you should have the following minimum qualification, at all times-
A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets provided by:
(a) a university which is recognized by University Grants Commission or by any other commission/council/board/body established under an Act of Parliament in India for the purpose; or
(b) an institute/association affiliated with such university; or
(c) an institute/ association/university established by the central government or state government; or
(d) autonomous institute falling under administrative control of Government of India;
OR
A professional qualification or post-graduate degree or post graduate diploma which is accredited by All Indian Council for Technical Education, National Assessment and Accreditation Council or National Board of Accreditation or any other council/board/body set up under an Act of Parliament in India for the purpose;
OR
A graduate in any discipline with an experience of at least five years in activities relating to financial products or markets or securities or fund or asset or portfolio management.
OR
2. Certification
Next, you should have NISM Certificate for Research Analyst. Click here to check the detail of the certificate you need to procure.
Note: The certification should be valid at all times, which means that in case the validity of the certificate is about to expire, you should renew the certificate well in advance in order to ensure the continuity of the certification.
3. Experience
An experience of 5 years is required in activities relating to financial products or markets or securities or fund or asset or portfolio management, if you hold only a graduate degree.
In other cases, where the post graduation degree is available, having an experience is not mandatory. However, it’s preferable to have an experience.
Note: The qualification, certification and experience requirements shall be fulfilled by an individual registered as Research Analyst. In case, where the Research Analyst is a non-individual, then individuals employed as Research Analyst and partners of Research Analysts shall fulfill the above requirements.
For example: If you have a B COM degree with 5 years experience as required and take NISM exam, you will fulfill the qualification and certification requirement.
However, if you have a B COM degree with no experience as required, then you do not fulfill the qualification and certification requirement.
4. Capital Adequacy:
The capital adequacy required are as follows:
For individuals and partnership firms- Net worth in form of net tangible assets should not be less than INR 1 Lac.
For non-individuals (Body Corporates and LLPs)- Net worth should be not less than INR 25 Lacs.
*Net worth means the aggregate value of paid up share capital plus free reserves (excluding reserves created out of revaluation) reduced by the aggregate value of accumulated losses.
The net worth certificate shall be obtained by a Chartered Accountant and shall be attached to the form while making an application with SEBI.
5. Adequate Infrastructure:
You should ensure to have an adequate infrastructure which shall include office space, office equipment, furniture and fixture, communication facilities, research capacity, research software for undertaking research analysis activities.
Application and Fee Structure:
Once the above criteria are fulfilled, you can proceed with making an application with SEBI for RA. All the details mentioned in Form A are required to be provided along with all the necessary required documents as attachments.
For this, you will require to login to https://siportal.sebi.gov.in/intermediary/index.html and complete the initial application process only then you will be able to proceed with the application with SEBI.
Note: In order to grant the registration certificate under the RA Regulations, SEBI might want the applicant to furnish further information or clarification on the submitted documents.
Fees Structure for the application with SEBI:
The application fees paid at the time of making the application is non-refundable.
Once you pay the application fees and file Form A with SEBI for registration, SEBI will scrutinize the form and the documents uploaded. In case, they need any additional information in order to approve your application, they will raise a query along with the timeline within which one should revert to the queries raised.
SEBI on being completely satisfied with the documents submitted will approve your application and request you to pay the registration fees. Upon payment of the registration, SEBI will issue you the license.
Hope the article gives you the clarity on the requirements for RA License. In case you have any query or are looking for any professional assistance to make an application, you may write to me at anjalibansalcs@gmail.com or reach out to me at +91 9148973085.