Summary of this article
Sebi proposes easier compliance for research analysts
The norm to store call recordings with institutional investors was proposed to be removed
The Securities and Exchange Board of India (Sebi) has proposed to ease compliance rules for research analysts by relaxing the requirement to maintain call recordings of conversations with institutional investors. The move is aimed at reducing compliance burden and improving ease of doing business in the securities market.
In a consultation paper released on May 18, Sebi suggested that research analysts (RAs) and research entities should no longer be required to keep recordings of calls with institutional clients. At present, the framework requires these records to be stored for at least five years, or longer in case of any pending disputes or regulatory review. However, it noted that they still need to maintain other forms of communication records, including emails, SMS messages, and other legally verifiable documents.
The proposed relaxation will apply only to institutional investors, Sebi said. For retail clients, the current rule requiring preservation of all records, including call recordings, will continue.
The proposal comes after feedback and representations from market participants and the Industry Standards Forum for Research Analysts. According to the regulator, institutional investors are sophisticated entities that have the expertise and resources to independently assess research reports and investment opportunities.
The regulator also noted that institutional investors are generally aware of their legal rights and the regulatory safeguards available to them. Because of this, Sebi believes a risk-based approach to record keeping is appropriate for such clients.
Sebi further said that the business of research analysts mainly involves providing research opinions and does not include activities such as portfolio management, transaction execution, or client-specific investment advice. Easing the call recording requirement for institutional clients is therefore unlikely to weaken investor protection.
To implement the proposal, Sebi has suggested amendments to the Sebi (Research Analysts) Regulations, 2014. It has also proposed using the definition of “institutional investor” from the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The consultation paper is part of Sebi’s broader effort to simplify compliance requirements across the capital markets ecosystem. Over the past few months, the regulator has floated several proposals aimed at reducing operational burden while maintaining investor safeguards. Sebi has invited public comments on the proposals till June 8, 2026.
