Most Important Terms and Conditions (MITC) now mandatory for every RA client
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.
“Most Important Terms and Conditions (MITC): RA shall also disclose MITC as specified below to their clients. (MITC have been standardized by Industry Standards Forum (ISF) in consultation with SEBI and RAASB). ... The fee charged by RA to the client will be subject to the maximum of amount prescribed by SEBI/ Research Analyst Administration and Supervisory Body (RAASB) from time to time (applicable only for Individual and HUF Clients). The current fee limit is Rs 1,51,000/- per annum per family of client for all research services of the RA. ... Fees to RA may be paid by the client through any of the specified modes like cheque, online bank transfer, UPI, etc. Cash payment is not allowed.”
An RA onboarding a new individual client must hand over the MITC document before the client pays anything — for example, if the client wants to prepay a year's subscription, the RA notes the current ₹1,51,000/year family fee ceiling and confirms the client understands the RA cannot execute trades on their behalf, only provide research.
Illustrative scenario written by Northspread — not text from the circular itself.