Mumbai (Maharashtra) [India], October 23 (ANI): The Securities and Exchange Board of India (SEBI) has announced that the proposed relaxation in mandatory call-recording requirements for research analysts and research entities dealing with institutional investors will come into effect from November 8, 2026, as per a circular shared by the market regulator on Friday.
Under the revised framework, research analysts and research entities will no longer be required to mandatorily maintain call recordings of their interactions with institutional investors. However, the regulator clarified that the broader requirement to maintain records of client interactions will continue to apply.
“The purpose of the records of the client interaction is to document the interaction to cater to potential client grievances related to research services provided by the RA/ research entity. Hence, RAs/ research entities shall ensure compliance with the provision for maintenance of records of interactions for all their clients,” it said, adding, “requirement to maintain call recordings of interactions with clients which are institutional investors shall not be mandatory.”
SEBI further clarified that call recordings are not required where client interactions take place through communication channels such as email, for which a digital footprint is already available.
The regulator also specified that record-maintenance requirements apply to both fee-paying and non-fee-paying clients receiving research services as a value-added offering alongside other paid services.
As per the revised provisions, records must be maintained from the first interaction with a client until the completion of research services.
Research analysts and research entities are required to preserve these records for five years. However, “in case where dispute has been raised, such records shall be kept till resolution of the dispute or if SEBI desires that specific records be preserved, then such records shall be kept till further intimation from SEBI.”
SEBI has directed the Research Analysts Administration and Supervisory Body (RAASB) to make necessary changes to its rules to implement the circular. It has also asked the body to inform all registered research analysts about the revised norms and publish the details on its website.
“The provisions of this circular shall come into effect from November 08, 2026,” it said. (ANI)
