SEBI Issues Revised Investor Charter for Research Analysts [ Read Circular]

The Securities and Exchange Board of India (SEBI) issued a circular dated June 2, 2025, announcing an updated Investor Charter for Research Analysts (RAs). The move is aimed at improving investor protection, enhancing transparency, and aligning with recent reforms such as the launch of SCORES 2.0 and the Online Dispute Resolution (ODR) platform.

The circular replaces the earlier one dated December 13, 2021, and modifies Clause 5 of the Master Circular for Research Analysts issued on May 21, 2024. The revised charter has been developed in consultation with the Industry Standards Forum (ISF) for Research Analysts.

Key Provisions of the Circular

Mandatory Disclosures for Research Analysts

• RAs must now publish the Investor Charter on their websites, mobile apps, and office premises.
• The charter must be shared with new and existing clients during the onboarding process via email or physical copy.
• RAs are required to disclose monthly complaint data by the 7th of each month, including:
• Number of complaints received and resolved.
• Cases pending for more than 3 months.
• Average resolution time in days.

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Scope of the Investor Charter

Vision & Mission

• Help investors invest wisely and safely.
• Promote goal-based investing with informed choices.

Research Analyst Duties

• Provide independent, unbiased research recommendations.
• Make full disclosures of financial interest and conflicts of interest.
• Use AI tools only with transparency about their role in the advisory process.
• Maintain data privacy and avoid premature disclosure of research content.
• Adhere to timelines and avoid discrimination in client servicing.

Services to Clients

• Disclose terms and conditions, disciplinary history, and associated risks.
• Maintain a record of all interactions with prospective and existing clients.
• Provide warnings and guidance when recommending high-risk or complex financial products.

Investor Rights and Protections

The charter formalizes key investor rights, including:

• Right to privacy, confidentiality, and fair treatment.
• Right to timely, transparent, and unbiased research.
• Right to grievance redressal via multiple mechanisms.
• Right to exit the service based on agreed terms.
• Additional rights for vulnerable consumers (e.g., elderly or differently abled).

Grievance Redressal Mechanisms

Investors can file complaints in the following ways:

1. Directly to the Research Analyst – resolution required within 21 days.
2. SCORES 2.0 – SEBI’s web-based platform for complaint tracking and redressal (scores.sebi.gov.in).
3. RAASB – Research Analyst Administration and Supervisory Body for initial review.
4. SMARTODR – SEBI’s ODR portal for online conciliation/arbitration.
5. SEBI’s Office in Mumbai – for physical complaint submissions.

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Investor Responsibilities

Do’s:

• Verify if the Research Analyst is SEBI-registered.
• Understand and review all disclosures before acting on any recommendation.
• Pay only via official banking channels, preferably via RAASB’s centralized system (CeFCoM).
• Always ask questions and seek clarification on risky or complex products.

Don’ts:

• Do not share passwords or sensitive financial details.
• Avoid acting on unsolicited tips, promises of guaranteed returns, or limited-time offers.

Complaint Reporting Requirements (Annexure B)

Research Analysts are required to:

• Maintain and display a monthly record of complaints received, resolved, and pending.
• Highlight cases of impersonation separately and address them under SEBI-prescribed processes.
• Also maintain annual disposal trends to track service performance.

Immediate Implementation

This circular comes into immediate effect from June 2, 2025. SEBI has directed BSE Limited (acting as RAASB) to ensure compliance by all registered Research Analysts.

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