SEBI Guidelines For Research Analyst

Money decisions often begin with trust, especially when someone says they know a lot about the market. Many people invest based on what research analysts say. SEBI guidelines for Research Analysts are meant to bring order, openness, and accountability to financial advice.

But many investors still don’t understand how these rules work in practice. Recent events show why knowing SEBI rules is more important than ever.

So, the question is, how to check an SEBI-registered research analyst?

Several analysts and finance influencers went beyond their limits, hurting investors. SEBI took action by punishing them, banning them, and getting money back in various cases.

These actions show the gap between what the rules say and what investors actually know.

SEBI Guidelines for Research Analysts 2026

Money advice can influence decisions that affect how much you save and what you plan for the future. In 2026, SEBI updated the rules for research analysts to improve quality and ensure they are held accountable.

These guidelines focus on building skills, being transparent, and using technology responsibly. They aim to protect investors and build more trust in advice that is based on solid research.

In recent years, SEBI noticed that some analysts weren’t meeting professional standards, and there were issues with how data was handled. As a result, SEBI introduced stricter rules around certification, disclosure, and following regulations.

These changes help set clear rules on how analysts work and how they interact with their clients. Every investor benefits when analysts follow clear and strong rules that they are required to follow.

Guidelines for Research Analysts:

• Every research analyst must have a valid registration with SEBI and an active RA number.
• Analysts must pass the NISM Series XV exam and renew their certification every three years.
• Anyone with a graduate degree, from any field, can apply to become a research analyst, not just those in finance.
• Analysts must keep a security deposit between ₹1 lakh and ₹10 lakhs.
• All communications with clients must be recorded and stored securely.
• Analysts must clearly explain when they use AI and ensure that client data is protected.
• Research reports must be based on accurate data, thorough analysis, and well-documented reasoning.
• Analysts must stay up-to-date on SEBI circulars and report any significant changes promptly.

Common Violations by Research Analysts

Even when clear rules exist, some research analysts still fail to follow them. This often happens because they feel pressure to get more clients quickly.

Can We Trust SEBI-Registered Research Analysts? Many analysts choose to focus on attracting people rather than obeying the rules. This kind of behavior harms investor trust and weakens the fairness of the market.

SEBI often points out wrongdoings that relate to the quality of advice and ethical issues. Most of these violations follow similar patterns in different cases.

These actions put investors at a higher risk of losing money. They can also lead to penalties, bans, and loss of registration.

These Violations Are:

• Promising returns that are guaranteed or fixed, even when the market risks are clear.
• Using misleading ads, fake customer reviews, or making overly positive profit claims.
• Giving advice or stock tips without having a valid SEBI registration.
• Managing client trading accounts or client money directly.
• Unauthorised Trading for personal gain against the research recommendations they publish.
• Not revealing any financial interests or conflicts of interest.
• Setting up unfair profit or loss-sharing deals with clients.
• Sharing only the good results and not the bad ones.
• Giving general advice without understanding the client’s risk tolerance.
• Not keeping proper records, research reports, or KYC documents.
• Sending tips through messaging apps without any proper analysis.
• Not following KYC and AML rules as required by SEBI.

SEBI Action on Violation of RA Regulations

SEBI closely monitors the conduct of registered Research Analysts (RAs) to ensure that investors receive fair, transparent, and compliant advice. When RAs fail to follow regulations—such as disclosure norms, conflict-of-interest rules, or basic compliance requirements—SEBI steps in with enforcement actions.

These actions are not meant to alarm investors, but to maintain market integrity and hold advisors accountable. To better understand how these violations occur in practice and how SEBI responds, let’s look at a few real-world case studies.

1. SEBI Cancels Licenses of 72 Research Analysts

Recently, SEBI took action against 72 research analysts by cancelling their registrations. The reason wasn’t market manipulation or fraud—but something much more basic. These analysts failed to pay their mandatory registration renewal fees on time.

In India, research analysts are required to renew their SEBI registration periodically to continue operating legally. If they don’t, their registration simply stops being valid. SEBI’s move is a reminder that regulatory compliance is not optional, even for people who already have experience or a following.

For retail investors, this highlights an important point:

• A SEBI registration is only meaningful if it is active and compliant. Some individuals continue offering tips, reports, or recommendations even after their registration lapses, hoping investors won’t check the details.
• SEBI’s action is meant to reduce this risk and protect investors from relying on advice that comes from analysts who are no longer authorised to operate. It also reinforces why investors should always verify an advisor’s current registration status rather than assuming credibility based on claims or past reputation.

In short, rules exist not just to punish—but to ensure accountability. And staying informed is one of the strongest protections an investor can have.

2. SEBI Penalty on Research Analyst Prerna Sharma

SEBI penalised research analyst Prerna Sharma for misleading content on YouTube and multiple compliance failures discovered during an inspection. The videos created false investor expectations of assured profits.

Violations Found by SEBI

1. Misleading YouTube videos promise assured returns.
2. Failure to disclose conflicts of interest.
3. Non-compliance with disclosure and documentation norms.
4. A false experience letter was submitted to meet qualification requirements.

SEBI Action –  SEBI imposed a ₹15 lakh penalty on Prerna Sharma under RA regulations and PFUTP rules.

When to File a Complaint Against a Research Analyst?

Investors should take action fast when they start losing trust in a research analyst. Minor red flags can turn into major financial problems if not addressed early.

SEBI has a clear process for filing complaints, which helps protect investors from harm. By filing a complaint, investors can prevent more losses and hold the analyst accountable.

Reporting issues early also helps regulators spot repeated or widespread misconduct.

So, when can your file complaint:

• File a complaint if the analyst promises guaranteed or fixed returns.
• If the analyst gives tips without proper research reports.
• If you see misleading ads or untrue claims about past performance.
• If the analyst refuses refunds or doesn’t follow through on promises.
• If the analyst doesn’t disclose any conflicts of interest.
• If the analyst manages your trading account or handles your funds.
• If the analyst works without proper SEBI registration.

Investor Safety Note: Always check if the analyst is registered with SEBI before following any advice.

How To Report A Research Analyst?

Reporting a complaint against a research analyst helps protect your money and future decisions. SEBI provides a clear process so investors can confidently raise their concerns.

You should follow the steps in the right order to get a quicker resolution. Having proper documents and reporting the issue on time can improve the outcome of your complaint.

Here are the steps to file a complaint systematically:

1. First, bring up the issue directly with the research analyst via email or written message.
2. Keep copies of all replies, research reports, payment proofs, and other communication records.
3. If the analyst does not reply within a reasonable time, you can take the matter to SEBI.
4. Lodge complaint on the SEBI SCORES portal, which is managed by SEBI.
5. Make sure to enter the correct details, upload all supporting evidence, and clearly explain the problem you faced.
6. Check the status of your complaint regularly and provide any additional information if requested.
7. If the issue is not resolved, follow SEBI’s instructions for further steps or regulatory action.

Need Help?

Dealing with a research analyst can be confusing and stressful. Many investors find it hard to know where to start or which steps are most important.

Reach out to us; we understand your worries and take the time to listen before offering any advice. Our main goal is to protect your interests and stay focused on that.

We walk you through the process from gathering documents to submitting your complaint. We help you organize your evidence, write clear explanations, and avoid typical errors.

We keep track of the progress and guide you until the matter is properly resolved. You’re never alone during this process, and we’re here to support you every step of the way.

Conclusion

SEBI guidelines for research analysts are in place to safeguard investors and ensure high-quality research. These rules require transparency, proper qualifications, and ethical behavior throughout the process.  They also ensure responsibility by enforcing strict rules for registration and sharing information. When followed correctly, these guidelines help build long-term trust in financial advice.

Investor awareness is the most important way to protect oneself in real situations. Checking if someone is registered and asking about promises can help avoid unnecessary losses. Reporting issues on time allows regulators to take action and fix wrongdoings. Informed investors can make better decisions and protect their financial goals.