Can A Research Analyst Handle An Account In India?

Imagine handing over your bank passwords to a stranger.

Sounds crazy, right?

Yet thousands of Indian investors do exactly this with their trading accounts. They trust “research analysts” who promise to “manage everything.”

Let’s understand why SEBI made a rule. And what happens when someone breaks it?

What SEBI Says About Account Handling?

No, Research Analysts CANNOT handle your trading account in India. This is strictly prohibited.

SEBI’s official position is crystal clear. Research Analysts can only provide advice, not handle accounts.

You might be wondering, is Account Handling legal?

The answer is simple: except for certain SEBI-registered Portfolio Management Services (PMS), account handling by anyone else is illegal.

According to the SEBI (Research Analysts) Regulations, 2014, “Research analyst means a person who is primarily responsible for the preparation or publication of the content of the research report or providing a research report or making a ‘buy/sell/hold’ recommendation or giving a price target or offering an opinion concerning a public offer.”

Notice what’s missing?

Any mention of account handling.

In short, Research Analysts are strictly limited to:

Preparing research reports
Providing buy/sell/hold recommendations
Offering opinions on securities

According to Regulation 15(1) from SEBI’s official document, “Research analyst or research entity shall have written internal policies and control procedures governing the dealing and trading by any research analyst.”

This focuses on the analyst’s own trading activities, not managing client funds.

Furthermore, Regulation 24(1) states, “Research analyst or research entity shall maintain an arms-length relationship between its research activity and other activities.”

Who Can Legally Manage Your Trading Account?

Confused about who’s allowed to touch your money?

Let’s clear this up.

Only SEBI-registered Portfolio Management Services (PMS) are allowed to handle client accounts in India; this is what SEBI Registered Account Handling means. No one else can legally execute trades on your behalf.

According to SEBI’s official FAQ on Portfolio Managers, “The portfolio manager is required to accept a minimum INR 50 Lacs or securities having equivalent value from a client while opening the PMS account.”

PMS Requirements – Must strictly follow:

SEBI (Portfolio Managers) Regulations, 2020 registration
Minimum ₹50 lakhs client investment threshold
Segregated client account maintenance
Quarterly performance disclosures to clients

According to official SEBI regulations, “The funds of all clients shall be placed by the portfolio manager in a separate account to be maintained by him in a scheduled commercial bank.”

Research Analysts only provide recommendations. You make the final investment decision.

What Research Analysts CAN and CANNOT Do?

Let’s break down the legal boundaries.

These protect your hard-earned money.

What RAs CAN Legally Do:	What RAs CANNOT Do Under Any Circumstance:
Prepare detailed research reports	Take custody of your funds
Issue buy/sell/hold recommendations with analysis	Manage your trading or demat account
Provide price targets based on research	Ask for your login credentials
Conduct fundamental and technical analysis	Accept deposits from clients
Make public appearances for investor education	Promise guaranteed returns

According to SEBI’s Investor Charter for Research Analysts, “Do not provide funds for investment to the Research Analyst. Do not share login credentials and password of your trading and demat accounts with the Research Analyst.”

Account Handling Complaints

Real investors have faced these issues. Let’s see what they experienced.

Common Complaint Patterns:

Account Access Requests – Multiple investors report: “After I said I don’t have time to trade, they offered ‘account management services.'” This is illegal.

Login Credential Sharing – Investors were asked: “Share your broker login so we can help execute trades faster.” Major red flag.

Guaranteed Return Promises – Some analysts claimed: “We’ll handle everything and guarantee 20% returns.” Completely prohibited.

Warning Signs To Watch Out For:

Any request for account passwords
Promises of guaranteed profits
Pressure to give account access
Claims they’ll “manage everything”

How to File a Complaint Against RIA?

Found someone violating these rules?

Here’s exactly how to report them:

Step 1: File a complaint with SCORES

Register with your PAN and contact details
Lodge complaint against the Research Analyst through the SEBI SCORES portal.
Track status online 24/7

Step 2: File a complaint in SMART ODR

Use conciliation and online arbitration
Resolve disputes faster than traditional methods

Step 3: Additional Reporting Platforms:

Stock Exchange Investor Grievance Cells (NSE/BSE)
Consumer Forums for financial fraud cases
If the complaint remains unresolved, you can escalate it through arbitration in stock market.

Need Help?

Are you facing account handling issues with a Research Analyst?

If you’ve experienced illegal account handling, unauthorized trading, or credential sharing requests, register with us.

Don’t wait until it’s too late.

For legal assistance with SEBI complaints and investor protection matters, professional guidance can help you navigate the regulatory process effectively and protect your financial interests.