Regulations
Research analysts must have professional degree, NISM certificate

Research analysts must have a professional qualification, a post-graduate degree or a post-graduate diploma in finance, accountancy, capital market, financial services or markets besides certification from NISM, says SEBI

As per the new norms issued by market regulator Securities and Exchange Board of India (SEBI) research analysts would be required to have a professional degree as also an National Institute of Securities Markets (NISM) or equivalent certification to ensure that investors get the right financial advice.

 

The NISM has been established by the SEBI to conduct academic programmes and certification examinations for financial education.

 

The new regulations would require that any individual seeking registration as a ‘Research Analyst, or those engaged in preparation or publication of research analysis and reports have certain minimum qualifications.

 

These would include a professional qualification, a post-graduate degree or a post-graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets.

 

Such a degree would need to be from a university recognised by the University Grants Commission (UGC) or by an equivalent establishment.

 

Otherwise, the research analyst can have a professional degree or post-graduate diploma from an institution accredited by All Indian Council for Technical Education, National Assessment and Accreditation Council or National Board of Accreditation, or any other equivalent body.

 

Those having a graduate degree would need experience of at least five years in activities relating to financial products, markets, securities, funds, asset or portfolio management.

 

In addition to the professional degree, the research analyst would also need to have, at all times, a NISM Certification Examination for research analysts as specified by SEBI, or any other certification recognised by the regulator board from time to time.

 

In case of research analysts or research entities already engaged in issuance of research reports, the new regulations require that such individuals obtain a certification within two years from the date of commencement of these regulations.

 

The new norms have been approved by the SEBI board and are in the process of being notified.

 

SEBI last week cleared detailed norms for ‘research analysts’ to safeguard investors from any manipulation by such entities and to bring in greater transparency in their activities.

 

“In India, research analysts were not being regulated. Now we have provided that all people doing research reports will be regulated, there will be a requirement, registration with SEBI and post-registration they will have certain disclosure requirements,” SEBI Chairman UK Sinha had said after a SEBI board meeting on 19th June.

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COMMENTS

Sankara Gullapalli

3 months ago

Dear Sir
Can any Engineering graduate from AICTE accredited institute register as RA if he passes NISM RA certification exam ?

Nilesh KAMERKAR

3 years ago

Moat doesn't get any bigger. . . NISM ought to be listed soon.

Indian govt to slap $578 million additional penalty on Reliance?

According to media reports, a note is being sent to the Oil Minister Dharmendra Pradhan, for disallowing cost recovery of $578 million in 2013-14, and a notice will be sent to RIL once he approves it

The Indian government is planning to impose an additional penalty of $578 million on Reliance Industries Ltd (RIL) for producing less-than-targeted natural gas from its eastern offshore KG-D6 block, say media reports.

 

The penalty in the form of disallowing costs incurred on the field will be for missing the target in 2013-14, a government source was quoted as saying in media reports. With this, the total costs disallowed will increase to $2.375 billion.

 

Earlier, the union government had issued a notice to RIL, disallowing a total of $1.797 billion in costs for falling short of production during 2010-11 ($457 million), 2011-12 ($548 million) and 2012-13 ($792 million).

 

A note is being sent to the Oil Minister Dharmendra Pradhan for disallowing cost recovery of $578 million in 2013-14, and a notice will be sent to RIL once he approves it, the source was quoted as saying.

 

Production from the main gas fields in the KG-D6 block has dropped to about one tenth of the planned 80 million standard cubic meters per day. The fall in output meant that facilities created after huge investments went un-utilised.

 

The production sharing contract allows RIL and its partners, BP Plc and Niko Resources, to deduct all capital and operating expenses from the sale of gas before sharing profit with the government.

 

The creation of excess or un-utilised infrastructure impacts the government's profit share and this is sought to be corrected by disallowing part of the expenses incurred.

 

According to reports, the ministry believes that $115 million in additional profit share would have accrued to the government from disallowing the cost in 2013-14.

 

To recover this additional profit share, it has proposed that state-run companies deduct $115 million from payments due to RIL for crude oil and gas bought from KG-D6 block, the report added.

 

Once Pradhan approves, the ministry will instruct Chennai Petroleum and Hindustan Petroleum, which buy crude oil from the KG-D6 block, and GAIL India, which purchases KG-D6 gas, to remit $115 million deducted from payments to RIL and deposit the amount in a government account, the report said.

 

The move comes after RIL did not agree to deduct the disallowed costs from total expenses incurred, before calculating the government's share of profit petroleum.

 

The government's profit share would rise by $195 million if all of the $2.375 billion of disallowed costs is deducted from expenses incurred.

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I-T department asked to redress taxpayers grievances fast

According to official data compiled till 23rd June, a total of 5,283 grievances are pending in various wings of the I-T department with 1,604 such pleas pending for more than one year

The Central Board of Direct Taxes (CBDT) has asked the Income-Tax Department to ensure prompt action in timely redressal of taxpayers grievances that are pending for a long time.

 

The CBDT, which supervises the functioning of the I-T department, has asked all Chief Commissioners of the department to ensure that grievance applications are not kept pending for a long time.

 

According to official data compiled till 23rd June, a total of 5,283 grievances are pending in various wings of the I-T department with 1,604 such pleas pending for more than one year.

 

Taxpayers grievances in the I-T department vary from timely credit of refunds, problems related to filing of tax returns and similar issues.

 

“Pending grievances shall be reviewed and authorities concerned reminded for redressal on weekly basis and special focus shall be on grievances pending for more than one year and every effort shall be made to redress such grievances on priority basis,” the CBDT wrote to the top I-T officers of various zones in the country recently.

 

The decision to speed up action in this regard was taken by the CBDT after a meeting of all the ministries and departments was held by the Department of Administrative Reforms and Personnel Grievances where the pending public pleas of the I-T department were also discussed.

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