Description
SEBI notifies the second amendment to Research Analysts Regulations, 2014, revising educational qualifications, certification requirements, and compliance obligations for research analysts and associated persons.
Summary
SEBI has issued the Securities and Exchange Board of India (Research Analysts) (Second Amendment) Regulations, 2025, effective from the date of gazette publication (November 25, 2025). This amendment significantly revises Regulation 7 of the SEBI (Research Analysts) Regulations, 2014, modifying educational qualification requirements and introducing new certification renewal obligations for research analysts and persons associated with research services.
Key Points
- Amendment to Regulation 7 regarding minimum qualification requirements for research analysts and associated persons
- Expanded scope to include persons associated with research services in qualification requirements
- Revised educational qualifications with two alternative pathways
- Introduction of mandatory certification renewal requirements within three years
- Changes to application procedures with recognition of self-regulatory organizations
- Applicable to individual research analysts, non-individual research analysts’ principal officers, employed persons, and partners in partnership firms
Regulatory Changes
Revised Educational Qualifications (Regulation 7):
Research analysts, their partners, and persons associated with research services must possess either:
Option (a):
- Bachelor’s degree or equivalent academic qualification from a university/institution recognized by Central/State Government or foreign recognized university/institution/association, OR CFA charter from CFA Institute
- AND relevant certificate from National Institute of Securities Markets (NISM) or NISM-recognized organization/institution
Option (b):
- Post Graduate Program in Securities Market (Research Analysis) from NISM, OR any other program specified by SEBI
Certification Renewal Requirements:
- All registered research analysts (individual and non-individual categories)
- Principal officers of non-individual research analysts
- Persons employed as research analysts
- Persons associated with research services
- Partners in partnership firms engaged in research services
Must obtain relevant NISM certification as specified by SEBI within:
- Three years from registration certificate issuance date, OR
- Before expiry of existing certificate validity period
This ensures continuous compliance with certification requirements.
Application Process Changes:
- Applications to be submitted to SEBI-recognized bodies or body corporate for supervision of research analysts
- If no such body is recognized, application to be submitted to SEBI’s Mumbai head office
- Must be accompanied with all necessary supporting documents
Compliance Requirements
Immediate Actions Required:
- Research analysts registered under existing regulations must review their qualification and certification status
- Ensure compliance with revised educational qualification requirements
- Plan for certification renewal within the three-year deadline
- Non-individual research analysts must ensure principal officers, employed persons, and partners (engaged in research services) meet the revised requirements
- Update internal compliance procedures to reflect amended regulations
Entities Affected:
- Individual research analysts
- Non-individual research analysts (firms, companies)
- Principal officers of research analyst firms
- All persons employed as research analysts
- Persons associated with research services
- Partners in partnership firms providing research services
Ongoing Compliance:
- Maintain valid NISM certification by renewing before expiry
- Ensure all new hires in research roles meet qualification requirements
- Monitor SEBI notifications for specific certification programs designated from time to time
Important Dates
- November 25, 2025: Effective date of amendment (date of gazette publication)
- Within 3 years from registration: Deadline for existing registered entities to obtain renewed NISM certification
- Before certificate expiry: Deadline for certification renewal (whichever is earlier)
Impact Assessment
Industry Impact:
- High: All research analysts and research service providers must ensure compliance with revised qualification framework
- Enhanced professionalization of research analyst industry through standardized qualification requirements
- Increased emphasis on continuous education and certification renewal
Operational Impact:
- Research analyst firms need to audit all personnel associated with research services for compliance
- Investment in training and certification programs for existing staff
- Potential hiring challenges if candidates lack required qualifications
- Administrative burden of tracking certification expiry and renewal schedules
Compliance Impact:
- Three-year transition period provides reasonable time for compliance
- Dual pathway for qualifications offers flexibility (academic + NISM certificate OR NISM post-graduate program)
- Mandatory renewal requirements ensure ongoing competency assessment
- Non-compliance could result in registration cancellation or penalties
Market Impact:
- Strengthens investor protection through enhanced analyst qualifications
- Improves quality and credibility of research reports
- Standardization across the research analyst industry
- Potential consolidation as smaller entities may face compliance challenges
Impact Justification
Major regulatory amendment affecting all registered research analysts, their partners, principal officers, and associated persons with revised qualification and certification requirements