DOs & DON’Ts of Research Analyst (RA)

DOs – Mandatory Compliance Practices

1. Always monitor communications of employees.
2. Use only company-approved communication devices for client interaction.
3. Preserve all client communications including chats, emails, and call recordings.
4. Use only SEBI-registered email IDs for client communication.
5. Follow all applicable SEBI, Exchange, and internal compliance requirements.
6. Never use language that promises or induces assured returns.
7. Maintain all compliance records securely on official storage drives.
8. Update SEBI/BSE promptly for any material changes.
9. Issue proper invoices or payment confirmations for all client payments.
10. Track and implement compliance updates on priority basis.
11. Ensure website is regularly monitored and updated.
12. Accept fees only in SEBI-registered bank account.
13. Always work in the best interest of investors.
14. Ensure employees dealing with clients clear NISM-XV.
15. Issue joining and relieving letters to employees.
16. Renew rent agreements before expiry.
17. Pay applicable GST on collected fees.
18. Maintain proper research rationale with disclosures and risk factors.
19. Add minimum 3 years daily closing charts for BTST, Swing, and Long-Term calls.
20. Maintain screenshots of group call history with date and time.
21. Digitally sign all research rationale pages and store records for 5 years.
22. Issue periodic awareness notices against social media fraud.
23. Collect Client Consent, FATCA, and KYC before providing services.
24. Promptly refund unused service fees to clients.
25. Provide website risk disclosure link with every free and paid call.
26. Check SEBI SCORES portal weekly for grievances.
27. Maintain a physical notice board at office premises.

DON’Ts – Prohibited Activities

1. Do not delete any client communication records.
2. Do not overcharge clients beyond declared service fees.
3. Do not sell multiple research packages without written client consent.
4. Do not charge more than ₹1,51,000 + GST per year from family clients.
5. Do not accept cash payments or payments in any other bank account.
6. Do not open corporate or private limited entities for excess fee collection.
7. Do not use multiple trade names (only one trade name per RA).
8. Do not mix other business income with research services bank account.
9. Do not provide PMS, guaranteed returns, or profit-sharing services.
10. Do not ignore SEBI or regulatory communication or notices.