SEBI Recognises BSE Limited for Enhanced Supervision of Research Analysts and Investment Advisers
Moneylife Digital Team 15 July 2024
In a significant move to enhance regulatory oversight in the securities market, Bombay Stock Exchange (BSE) Limited has been granted recognition by the Securities and Exchange Board of India (SEBI) for the administration and supervision of Research Analysts (RAs) and Investment Advisers (IAs). This recognition, will be effective for a period of five years starting from 25 July 2024.
 
Under Regulation 14 of the SEBI (Research Analysts) Regulations and SEBI (Investment Advisers) Regulations, 2013, BSE will function as the Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body (IAASB). This dual role empowers BSE to oversee and ensure compliance among RAs and IAs.
 
To facilitate a smooth transition and effective implementation of the new framework, BSE is tasked with formulating bye-laws, issuing circulars, Standard Operating Procedures (SOPs) and Frequently Asked Questions (FAQs). These measures aim to provide comprehensive guidance and ensure seamless adoption by RAs and IAs.
 
In alignment with the new supervisory roles, applicants seeking registration or renewal as RAs or IAs will be required to pay administrative fees to RAASB and IAASB, as specified by the respective bodies. Importantly, the total fees payable by an applicant, encompassing application, registration and renewal fees to SEBI and administrative fees to RAASB or IAASB, will remain fee-neutral compared to the existing fee structure.
 
SEBI has revised the fees payable by RAs or applicants seeking registration, effective from 25 July 2024. Detailed information on the revised fee structure can be accessed on the SEBI website.
 
Notably, for applications received before the aforementioned date, the existing fee structure will apply.
 
The circular underscores SEBI's commitment to protecting investor interests and promoting the development and regulation of the securities market. The terms and conditions specified in the 2 May 2024, circular (https://www.sebi.gov.in/legal/circulars/may-2024/framework-for-administration-and-supervision-of-research-analysts-and-investment-advisers_83145.html) will continue to apply, ensuring consistent regulatory standards.
 
The move aims to protect the interests of investors in the securities market and promote the development of, and regulate the securities market.
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