Sebi Exempts Research Analysts From Mandatory Call Recording Of Institutional Clients

The Securities and Exchange Board of India (Sebi) has exempted research analysts and research entities from the mandatory requirement to maintain call recordings of their interactions with institutional investors, thereby easing compliance requirements for market participants. In a circular dated October 23, 2026, Sebi said the change follows representations from market participants and an amendment to the Sebi (Research Analysts) Regulations, 2014. The revised requirements will come into effect on November 8, 2026.

The exemption is limited to maintaining call recordings of interactions with institutional investors. Research analysts must continue to maintain records of interactions with all other clients, including prospective clients, where conversations relating to their services have taken place. These records may include physical documents signed by clients, call recordings, emails sent from registered email IDs, SMS messages, and other legally verifiable records.

Sebi has also clarified that the requirement to maintain interaction records applies to both fee-paying and non-fee-paying clients. The latter category includes clients who receive research services as a value added service alongside other paid services obtained from the research entity or another entity within the same family or group.

Digital Records Sufficient For Email Interactions

Sebi has said that separate call recordings are not required when interactions take place through channels such as email, where a digital record is available.

Research analysts and research entities must maintain records from the first interaction with a client until the completion of the research services. These records must generally be preserved for five years. In the event of a dispute, the records must be retained until its resolution. Records that Sebi specifically directs entities to preserve must be maintained until the regulator issues further instructions, it added.

Sebi said the purpose of maintaining these records is to document client interactions and help address potential grievances relating to research services.

The circular also directs the Research Analysts Administration and Supervisory Body (RAASB) to amend its relevant rules and bye-laws to implement the changes. The body must also inform registered research analysts about the revised requirements and publish the changes on its website.