SOP for enlistment and post enlistment activities of IA & RA

Standard Operating Procedure (SOP) for enlistment and post enlistment activities of BSE for Research Analyst (RA) and Investment Adviser (IA)

In accordance with SEBI circular no. SEBI/HO/MIRSD/MIRSD-SEC-3/P/CIR/2024/34 dated May 02, 2024, the entities seeking registration as RA and IA are required to be enlisted with Research Analyst Administration and Supervision Body (RAASB) and Investment Adviser Administration and Supervision Body (IAASB) respectively. Accordingly, SEBI vide circular no. SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2024/101 dated July 12, 2024 has granted recognition as RAASB and IAASB to BSE Ltd. (Exchange) with effect from July 25, 2024, for a period of five years.

Detailed process for obtaining enlistment with Exchange and submission of post enlistment applications is provided below:

I. Enlistment of IAs/RAs with the Exchange:

A) For existing SEBI registered Research Analysts and Investment Advisers:

RA/IA Regulations have been amended to provide for ‘enlistment’ of RAs/IAs with RAASB/IAASB. Accordingly, the applicant seeking registration as RA/IA shall be required to be ‘enlisted’ with RAASB/IAASB.

As regards the existing RAs and IAs registered with SEBI, the following process shall be followed:

(i) Existing RAs registered with SEBI shall be deemed to be enlisted with RAASB. Further, the existing IAs registered with SEBI who are also members of BASL shall be deemed to be enlisted with the IAASB. The letters containing the enlistment details will be mailed to the existing IAs/RAs in due course.

(ii) Applications for registration as RA received and under process up to July 24, 2024, shall be handled by SEBI as per the existing framework and such RAs shall be deemed to be enlisted with RAASB upon SEBI granting the registration to the said applicants.

B) For new applicants applying for IA/RA registration with SEBI:
Applicant shall follow the below mentioned procedure to be enlisted on RAASB or IAASB and to obtain SEBI Registration:
a. The application for IA or RA enlistment and SEBI registration to be submitted through BSE portal https://membershipraia.bseindia.com or on the following email ids:-

The checklist of documents to be submitted for enlistment as IA/RA is available on the https://www.bseindia.com/static/iara/IA_enlistandpost.aspx under IA/RA tab.

b. The application will be scrutinised.
c. An application ID shall be created in SEBI SI portal for each applicant.
d. Challan will be generated for SEBI application fees.
e. Intimation shall be sent through email to the applicant for payment of SEBI application fees.
f. Applicant shall pay the application fees to SEBI directly within the stipulated timeframe (currently within 48 hours from the date of generation of the challan) on the challan generated.
g. Exchange shall upload the registration documents on SEBI SI portal. In case payment of SEBI application fees is not done by the applicant; the Exchange cannot upload the application on SEBI SI portal.
h. SEBI will scrutinize the application and intimate Exchange, based on which SEBI challan will be generated on the applicant to initiate payment towards RA / IA registration fees.
i. SEBI challan will be generated from the SEBI SI portal for payment of registration fee. The challan shall be valid for 48 hours from the date of generation. Intimation to make said payment along with the administrative fee payable to the Exchange shall be sent through email to the applicant.
j. Applicant shall make payment of the registration fee to SEBI and administrative fee to the Exchange simultaneously and share the payment details with the Exchange.
k. Exchange shall send the payment details to SEBI for confirmation
l. Upon receipt of administrative fees by the Exchange and payment confirmation from SEBI regarding the registration fee, the Exchange shall enlist the applicant and inform SEBI about the enlistment.
m. Exchange shall upload the enlistment letter and recommendation letter to SEBI to grant IA/RA registration to the applicant.
n. SEBI shall issue Registration number and E-Certificate of registration.
o. Exchange shall send to the IA / RA the SEBI E-certificate of registration, Exchange enlistment letter and invoice towards payment of administrative fee.

BSE enlistment number and SEBI registration are mandatory for commencement of Investment Advisory or Research Analyst activities. The tenure of enlistment as an Investment Adviser and Research Analyst with the Exchange and SEBI registration shall be valid for a period of five years.

SEBI registration as an Investment Adviser or Research Analyst shall be renewed before expiry of the above-mentioned period or as per the norms specified by SEBI from time to time.

II. Renewal of SEBI registration certificate and Exchange enlistment:
The following process to be followed for SEBI certificate / Exchange enlistment renewal process:-
a) SEBI registered IA/RA shall pay the applicable renewal fees to SEBI and Exchange to keep their registration in force.
b) SEBI and Exchange shall inform the IA/RA to make payment of the renewal fees at least three months prior to expiry of SEBI registration date
c) IA/RA shall inform the Exchange about its intention to make payment of the renewal fees to SEBI and the Exchange
d) Based on the confirmation, the Exchange shall generate SEBI challan and send it through email to the IA /RA
e) IA / RA shall make payment of the renewal fees to SEBI and the Exchange simultaneously and share the payment details with the Exchange.
f) Exchange shall send the payment details to SEBI for confirmation
g) On receipt of renewal fees by the Exchange and payment confirmation of renewal fees from SEBI, invoice will be given by the Exchange to the IA/RA.
h) SEBI will issue the invoice to the registered IA/RA

RAs registered with SEBI till July 24, 2024, are required to submit the following details and documents through email to facilitate payment of renewal fee and generation of invoice:
i) Copy of PAN
ii) GSTIN certificate if applicable. If not applicable, then a declaration stating to that effect.
iii) TAN
iv) CIN
v) Proof of address (namely Registered Rent agreement or Passport or Bank Statement/Passbook)
vi) Contact number of RA

All correspondence to the Exchange shall be done on the following email address:

III. Post Enlistment / SEBI Registration applications
The following procedure shall be followed by IAs/RAs for submitting post enlistment applications i.e. change in control, change in shareholding without change in control, change in name, change in registered/ correspondence/ principal place of business address, change in principal officer/ compliance officer, establishing of overseas subsidiary, surrender of membership/registration, etc.:

1. IA/RAs shall refer to the checklist provided on link below for for the relevant post enlistment changes.

https://www.bseindia.com/static/iara/IA_enlistandpost.aspx

2. The completed checklist along with the relevant supporting documents / declarations shall be mailed on the email ids mentioned above at Sr. No 1 and 2 for IA and RA respectively.

The Exchange shall process all post enlistment applications and forward the same to SEBI through SI portal. The approval or rejection will be informed through SEBI auto generated mail to IA/RAs.
 
FEES TO BE PAID BY IA / RA to SEBI:

Fee structure of SEBI:

Fee structure of Exchange:

*plus applicable taxes

Details for remittance of payments vide Virtual Account Number (VAN):
The details of VAN will be provided through email to the applicant for making payment towards Exchange administration fees. Upon making payment the details of the same need to be mailed to [email protected] for IA or [email protected] for RA mentioning the bank account name, bank account no and UTR details.

IA/ RA may co-ordinate with following BSE officials for queries at the numbers given in the table below:-