Business · India Bureau
Sebi relaxes call-recording rules for research analysts
India's securities regulator has eased compliance requirements for research analysts, making call recordings optional rather than mandatory when dealing with institutional investors. The move aims to reduce administrative burden while maintaining record-keeping standards across the sector.
LSN India ·
The Securities and Exchange Board of India (Sebi) has withdrawn the mandatory requirement for research analysts and entities to maintain call recordings of their interactions with institutional investors, according to a circular issued on Friday.
The decision follows industry feedback seeking relief from stringent compliance obligations. While call recordings are no longer compulsory, research analysts must continue to maintain comprehensive records of all client interactions—including prospective clients—using alternative documentation methods such as signed physical records, emails, SMS messages, or other legally verifiable formats.
These interaction records must be preserved for a minimum of five years under Sebi's guidelines. In cases where disputes arise between parties, the records must be retained until the matter is fully resolved. Additionally, analysts must comply with Sebi directives to preserve specific records when the regulator requests such action.
The regulatory relaxation is expected to ease the compliance burden on research analysts while maintaining accountability standards across the institutional investment advisory sector. The modification reflects Sebi's approach to balancing investor protection with business operational efficiency.