2 Apr 2025SEBI Master Circular for Research Analysts
Advance fee cap for RAs relaxed from one quarter to one 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.
From the circular
View source document →“If agreed by the client, RA may charge fees in advance. However, such advance shall not exceed fees for a period of one year. In the event of pre-mature termination of RA services in terms of the agreed terms and conditions, the client shall be refunded proportionate fees for unexpired period.”
In practice
A research analyst who could previously only collect one quarter's fee upfront from an individual client can now bill a full year in one payment — e.g. a ₹60,000/year subscription as a single ₹60,000 charge instead of four ₹15,000 instalments — provided the client agrees and understands they get a pro-rata refund of unexpired months if they cancel early.
Illustrative scenario written by Northspread — not text from the circular itself.