Independent research analysts to soon come under Sebi purview

The move is being undertaken to ensure greater credibility and accountability in the conduct of independent research analysts

GN Bureau | October 21, 2013



The securities and exchange bureau of India (Sebi) is considering bringing in the ‘independent’ research analysts covering the Indian stock markets under its ambit in an attempt to minimise the risk of individuals/companies manipulating share price movements.

According to a report in The Economic Times, in addition to entities like brokerage firms, investment banks and fund houses, the markets watchdog is planning to regulate the ‘independent’ research analysts as well. According to a senior Sebi official, the markets watchdog is in the process of preparing a detailed code of conduct and guidelines to be followed by the 'independent' research analysts. The move is being undertaken to ensure greater credibility and accountability in the conduct of independent research analysts.

The move comes after Sebi had issued separate investment advisor regulations earlier this year. These regulations only covered registered individuals and entities providing research and consultancy services for a fee and this regulatory gap was being exploited by individuals and entities who did not wish to be registered with Sebi.

Hence, the markets watchdog has decided to issue separate guidelines for all kinds of research analysts including those operating independently, the official said.

Several recommendations have been made to Sebi in this regard by its international advisory board and the international organisation of securities commissions (IOSCO).

Among the new measures proposed, analysts could be directed to make detailed disclosures about their shareholding pattern, incentive structure, market dealings, and various direct and indirect business interests. Certain mechanisms ensuring that the trading activities and business interests of research analysts do not affect their reports could also be put in place.
 

Comments

 

Other News

“If the oppn is weak you can’t blame the govt for that”

A three-term Rajya Sabha member, Sanjay Raut is the Shiv Sena spokesperson and its voice in parliament. He is also the executive editor of Marathi newspaper Samana, started by Shiv Sena founder Bal Thackeray. Raut spoke with Geetanjali Minhas on his party’s seat-sharing agreement

Ashish Shelar of BJP says, “We are very confident of victory”

Ashish Shelar, 47, was the president of the Mumbai city unit of the BJP, before he became the minister of school education, sports and youth welfare in the Maharashta government this year. He has represented the Vandre West constituency in the state assembly and seeking re-election. In a chat with

Nobel for economics goes to `global fight against poverty`

The Nobel Prize in economics for 2019 goes to Abhijit Banerjee, Esther Duflo and Michael Kremer "for their experimental approach to alleviating global poverty." The prize, known as “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel”, was announc

Modi-Xi script a new chapter in bilateral relations

Prime minister Narendra Modi has accepted president Xi Jinping’s invitation to visit China in 2020 for their third informal summit after Wuhan and Mamallapuram, indicating both sides’ realization of the importance of the mechanism which gives the two leaders of the Asian giants an opportunity t

Dharma as the original Idea of India

Dharma: Hinduism and Religions in India By Chaturvedi Badrinath Edited by Tulsi Badrinath Penguin, 194+ xiii pages, Rs 499 How to live: That is the most fundamental question of human existence.

Prakash Ambedkar on why he wants other parties to mention the candidates’ community

Prakash Ambedkar, grandson of Dr BR Ambedkar and popularly known as Balasaheb Ambedkar, heads the Vanchit Bahujan Aghadi (VBA). The three-time MP founded this new political party last year with a vision of Ambedkarism, secularism, socialism and progressivism. The VBA, registered this year before the Lo



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter