Sebi recognises BSE as supervisory body for Research Analysts, Investment Advisors

BSE will formulate bye-laws as RAASB and IAASB and will issue circulars, Standard Operating Procedures (SOPs), Frequently Asked Questions (FAQs), and so on.

The market regulator has recognised BSE Limited as the Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body.

In a circular issued on July 12, the Securities and Exchange Board of India (Sebi) stated that BSE Ltd has been granted the recognition for five years starting July 25, 2024.

BSE will formulate bye-laws as RAASB and IAASB and will issue circulars, Standard Operating Procedures (SOPs), Frequently Asked Questions (FAQs), etc. to provide guidance and ensure smooth adoption of the RAASB and IAASB framework by RAs and IAs.

Applicants seeking registration/renewal as RA/IA will be liable to pay administrative fees, as specified by RAASB/IAASB.

On May 24, the market regulator had released framework for supervision of RAs and IAs.

Under it, to be recognised as this supervisory body, an entity must have minimum 15 years of existence as a recognised stock exchange. Further, the stock exchange must have a Minimum net worth of Rs 200 crore and have nation-wide terminals.

The stock exchange need to have a capacity for investor service management gauged through reach of at least Investor Service Centers (ISCs) in at least 20 cities.

The supervisory body will also have administrative responsibilities such as

approval of advertisements of RAs/IAs as per Advertisement Code issued by SEBI, maintenance of a database of RAs/IAs and issuance of circulars, instructions or standard operating procedures, etc. to RAs/IAs for implementation of provisions of SEBI regulations or circulars.

The RAASBs/IAASBs will also need to submit periodical reports to SEBI and collect fees.