The following few pages are summary of SEBI (Research Analysts) Regulations, 2014. This article mainly includes important provisions from the introduction part and basic understanding of the regulations and related aspects.
Introduction: It’s not at all a surprise if the Regulator is asking a person to register with them if he is influencing investment decisions of the investor community. This regulation has not come out of the blue. There would have been a history of cases where analysts would have fooled investors resulting into their losses in the past.
The regulator wants to know whether the persons influencing the market are capable and competent enough to appear in front of the public and guide them where to invest and where not, which shares to buy and which ones to sell off.
In nutshell, the regulation requires that no person can act as a Research Analyst or Research Entity before obtaining a certificate from SEBI.