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Research analyst

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As per the current regulation, no person shall act as a research analyst or research entity or hold himself out as a research analyst unless he has obtained a certificate of registration from SEBI on and from the commencement of RA Regulations unless an exemption specifically applies.

As per the regulations, “research analyst” means a person who is primarily responsible for,-

  • preparation or publication of the content of the research report; or
  • providing research report; or
  • making ‘buy/sell/hold’ recommendation; or
  • giving price target; or
  • offering an opinion concerning public offer,

with respect to securities that are listed or to be listed in a stock exchange, whether or not any such person has the job title of ‘research analyst’ and includes any other entities engaged in issuance of research report or research analysis.

The term also includes any associated person who reports.

Here are all the communications excluded from the definition of research report;

  • comments on general trends in the securities market
  • discussions on the broad-based indices;
  • commentaries on economic, political or market conditions;
  • periodic reports or other communications prepared for unit holders of Mutual Fund or Alternative Investment Fund or clients of Portfolio Managers and Investment Advisers;
  • internal communications that are not given to current or prospective clients;
  • communications that constitute offer documents or prospectus that are circulated as per regulations made by SEBI;
  • statistical summaries of financial data of the companies;
  • technical analyses relating to the demand and supply in a sector or index;
  • any other communication which SEBI may specify from time to time [Ref. Regulation 2(1)(w)];

Periodic reports such as sending financial account statements, annual reports and any other communication as required under the specific regulations prepared for unit holders of Mutual Fund or Alternative Investment Fund or clients of Portfolio Managers and Investment Advisers are excluded from the definition of research report under RA Regulations.

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