Regulatory updates
Circular changes that actually affect what you're required to do — sourced directly from the regulator, in reverse-chronological order.
The Regulation 8 deposit every RA must maintain is now a slab based on the maximum number of clients served in the previous financial year (₹1 lakh up to 150 clients, rising to ₹10 lakh for 1,001+ clients), and can be held as a bank deposit or as units of a liquid or overnight mutual fund — not just cash. The deposit is marked as a lien in favour of RAASB and must be reassessed by 30 April each year.
SEBI relaxed how far in advance a Research Analyst can charge fees from individual/HUF clients — up from one quarter to a full year. Clients who terminate early are still entitled to a refund of the proportionate unexpired-period fee, so the cap change affects cash-flow timing for RAs, not client refund rights.
Research Analysts must now disclose a standardized set of Most Important Terms and Conditions to every client — covering the ₹1,51,000/year fee ceiling for individual/HUF clients, the one-year cap on advance fees, permitted payment modes (cash is banned), and an explicit statement that RAs cannot execute trades or guarantee returns. The MITC was standardized by the Industry Standards Forum in consultation with SEBI and RAASB.
SEBI operationalized CeFCoM (Centralized Fee Collection Mechanism), a BSE-run portal letting clients pay advisory/research fees only to registered RAs through one closed, traceable channel — an optional alternative to direct bank transfer, meant to make it obvious when a payment is going to an unregistered entity.