Markets regulator Sebi is looking to come out with a standardised format for periodic reporting for research analysts (RAs) and proxy advisers (PAs) pertaining to their activities.
The regulator has recognised Research Analyst Administration and Supervisory Body (RAASB) for the purpose of administration and supervision of RAs under the RA Regulations.
As the Proxy Advisers (PAs) are registered under the RA norms, they will also come under the purview of RAASB. In its consultation paper, Sebi said it has been decided to specify a standardised format for periodic reporting for RAs and PAs.
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"Based on the recommendations received from Industry Standards Forum (ISF) for RAs (including PAs), a standardised periodic reporting format for submission of information by RAs/PAs, pertaining to their activities, has been prepared," Sebi said. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposed format till August 30.
RAs/PAs would submit the periodic report for half-yearly periods ending on September 30 and March 31 of every financial year, the regulator said.
Meanwhile, the market regulator is also planning to ease entry barrier for registered advisors. In a consultation paper released on August 7, the market regulator proposed relaxing the rules and regulations for registered investment advisers (RIAs).
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The market regulator issued the consultation paper in response to concerns from India’s advisory community about excessive regulation in the field. The proposals include easing entry qualifications, allowing greater flexibility in how RIAs charge their clients, and other changes.
Reacting to the recent consultation paper, Zerodha CEO Nitin Kamath took to X (formerly Twitter) and said, “One of the biggest challenges for the Indian markets is the lack of an advisory ecosystem. While the number of unique investors has grown from about 3 crore in 2020 to 10 crore today, the number of RIAs has barely grown. If anything, the number of RIAs seems to be decreasing.”
Kamath added, in a recent consultation paper, SEBI has suggested several modifications aimed at simplifying the process for individuals to become Registered Investment Advisors (RIAs). “If these proposed changes become final, it'll go a long way toward increasing the number of individuals wanting to become advisors,” he added.
(With inputs from PTI)
