On June 2, 2025, SEBI issued Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/81 introducing an updated Investor Charter for Research Analysts (RAs). This rescinds the earlier 2021 framework and amends the 2024 Master Circular. The revision incorporates developments like the Online Dispute Resolution (ODR) platform and SCORES 2.0, strengthening investor protection, transparency, and grievance redressal mechanisms.
Vision and Mission
The Charter sets out a clear vision: “Invest with knowledge & safety.” Its mission is to empower investors to select suitable financial products, track performance, and achieve financial wellness.
Obligations of Research Analysts
RAs are required to:
- Publish research reports based on independent analysis.
- Provide unbiased views and recommendations, disclosing financial interests in securities.
- Base research on publicly available information and known observations.
- Conduct annual audits of operations.
- Adhere strictly to SEBI’s Advertisement Code for RAs.
- Maintain detailed records of client interactions, even with prospective clients.
Services to Investors
RAs must:
- Share terms and conditions of services and complete KYC for fee-paying clients.
- Disclose material details such as disciplinary history, associates, conflicts of interest, and use of AI tools in research.
- Provide disclosures when distributing third-party research reports.
- Treat all clients fairly, maintain confidentiality until public release, and safeguard data privacy.
- Clearly define service timelines and give cautionary advice when recommending high-risk products.
Grievance Redressal
Investors can raise complaints in multiple ways:
- Directly with the RA – grievances must be resolved within 21 days.
- SCORES 2.0 – SEBI’s centralized system, with a two-level review by RAASB and SEBI.
- SMARTODR – for unresolved disputes, offering online conciliation or arbitration.
- Physical complaints – through SEBI’s Investor Assistance and Education office in Mumbai
Annexure B of the circular requires RAs to disclose complaint data monthly by the 7th on websites or apps, including pending cases, resolution times, and impersonation-related complaints. Trends of monthly and annual disposal must also be displayed.
Rights of Investors
Investors are entitled to:
- Privacy and data confidentiality.
- Transparent and equitable treatment.
- Adequate disclosures and true advertisements.
- Timely redressal of grievances.
- Guidance and caution notices for complex/high-risk products.
- Exit rights in line with agreements.
- Special provisions for vulnerable investors (e.g., differently abled).
- Protection against coercive or one-sided clauses
Responsibilities of Investors
Investors are expected to:
- Deal only with SEBI-registered RAs and verify registration.
- Pay fees via banking channels or RAASB’s CeFCoM mechanism.
- Carefully review research report disclosures before investing.
- Clarify doubts, especially regarding high-risk recommendations.
- Avoid giving funds directly to RAs, falling for tips, or sharing sensitive credentials.
- Report malpractices such as guaranteed return promises.
Conclusion
The revised Investor Charter for RAs strengthens accountability, transparency, and investor rights in India’s research ecosystem. By mandating clear disclosures, fair treatment, robust grievance mechanisms through SCORES 2.0 and SMARTODR, and heightened investor awareness, SEBI aims to build confidence in research services and ensure they serve investor interests effectively.
