SEBI Tightens Norms: A New Era of Transparency for Research Analysts and Investment Advisers

SEBI introduced comprehensive guidelines to enhance investor protection and transparency for research analysts and investment advisers. The norms entail new qualification standards, fee structures, and client segregation protocols. Enhanced compliance requirements, especially for AI tools, aim to ensure data security. Dual registrations and annual compliance audits are emphasized.

The Securities and Exchange Board of India (SEBI) has rolled out new guidelines aimed at strengthening investor protection and ensuring transparency for research analysts and investment advisers.

These rules, initiated after last year's regulatory notifications, establish standards including qualification criteria, deposit mandates, and client segregation protocols. SEBI is also applying tighter oversight on artificial intelligence usage in financial services.

The framework mandates compliance by 2025 and introduces provisions for dual registration, enhanced disclosure, and annual audits, marking a significant shift in regulatory expectations.