SEBI issued the Most Important Terms and Conditions (MITC) for Research Analysts
The MITC shall be informed by the RAs to their clients via email or any other suitable mode of communication (which can be preserved) by June 30, 2025.
Most Important Terms and Conditions (MITC)
The Research Analyst (RA) provides research services only and cannot execute trades for clients. Clients should not permit the RA to do so.
Fees charged are subject to SEBI/RAASB limits (Rs 1,51,000/- per annum per family for individuals and HUFs). This excludes statutory charges and doesn’t apply to non-individuals or accredited investors.
Advance fees (maximum one quarter) are refundable on a proportionate basis for the unexpired period in case of premature termination.
Payments can be made through cheque, online transfer, UPI, or CeFCoM; cash payments are not allowed.
The RA must disclose and manage any conflicts of interest and inform the client accordingly.
Assured, guaranteed, or fixed return schemes are illegal and cannot be offered.
The RA doesn’t guarantee returns, profits, accuracy, or risk-free investments. Recommendations are based on available data and assumptions.
Investments based on RA recommendations are subject to market risks, and clients bear full responsibility for any losses.
SEBI registration, RAASB enlistment, and NISM certification do not guarantee RA performance or returns.
Grievance redressal:
(1) Contact the RA.
(2) If unsatisfied, use SEBI’s SCORES platform.
(3) Consider Online Dispute Resolution (ODR) via Smart ODR.
Clients must keep their contact details updated with the RA.
The RA will never ask for login credentials or OTPs for trading, demat, or bank accounts. Clients should never share such information.
The provisions of this circular shall come into force with immediate effect.
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