To become a SEBI registered research analyst is a reputed and prestigious position for professionals in the financial sector of India. This position lets firms and individuals offer research recommendations to investors on securities for well-informed financial decisions. This article will help you understand the role, importance, and eligibility criteria of a SEBI research analyst.
The Role Of A SEBI Research Analyst:
A SEBI research analyst holds a vital role in the financial markets by providing professional analysis, insights and recommendations on investment strategies, securities, as well as economic trends to the investors. SEBI research analyst ensures transparency to protect the interests of the investors and uphold the market authenticity and integrity. Being a registered professional in the financial sector of India, a research analyst is expected to align with strict compliance requirements and the code of conduct.
Importance Of SEBI Registration:
To register with SEBI is compulsory for entities or individuals willing to offer research services on the share market today to the public. The advantages of becoming a SEBI research analyst consist of the following:
- Market access
A SEBI-registered research analysis legally gets to provide recommendations, research reports on intraday trade calls, and consultancy services to the public.
- Credibility
Being a registered research analyst, your trustworthiness and professional reputation are enhanced.
- Investor protection
A SEBI research analyst ensures compliance with the regulations created to protect investors from misleading information or bias.
SEBI-Registered Research Analysis: Eligibility Criteria
In order to become a SEBI research analyst, you must fulfil certain certification requirements, educational qualifications, and financial standards. Given below are some of the most important and common eligibility criteria that have to be completed in order to become a SEBI-registered research analyst:
- Educational qualification
As per SEBI regulations, candidates must complete one of the given educational criteria:
- Graduate degree
They must hold a graduate degree from any discipline with a minimum of five years of experience in the securities market, financial advisory, asset management or fund management.
- Postgraduate degree or professional qualification
To become a SEBI-registered research analyst, you must hold a postgraduate degree, diploma, or professional qualification in business management, finance, economics, commerce or other related fields.
- Postgraduate program
You must complete a postgraduate program in the securities market. Also, this program should be completed at the National Institute of Securities Market.
- Certification requirements
Each candidate willing to become a SEBI-registered research analyst must clear the NISM series XV: research analysis certification exam. With this certification, the applicant ensures they hold the knowledge of regulatory requirements, securities markets, and research methodologies.
- Financial standards
- Individuals must hold a net worth certificate that is issued by a chartered accountant, and also should not be older than six months.
- Net worth:
- For partnership firms and individuals: a minimum net worth of ₹1 lakh
- For LLPs and companies: 25 lakh should be the minimum net worth
Conclusion:
To become a SEBI-registered research analyst, you must go through a well-defined process that ensures only well-qualified individuals offer research services in the financial markets of India. By aligning with the eligibility criteria and fulfilling the compliance requirements of SEBI, you get to establish yourself as a trusted and reputable research analyst. This position not only boosts your professional credibility but also brings multiple opportunities for you in the financial sector.