Notice No. 20250305-52 Notice Date 05 Mar 2025
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Category | Others Segment Research Analysts |
Subject | Deposit requirement for Research Analysts (RAs) |
Attachments |
This is in continuation to the Exchange notice no. 20250110-3 dated 10 Jan, 2025 on the subject “Guidelines for Research Analysts”.
BSE enlisted Research Analysts (RAs) are requested to refer the file named “Deposit requirement for RA” for the manner and form in which the deposits are to be provided by the RAs.
Further, the list of banks and formats of annexures required for submission along with the original fixed deposit are attached as Annexures 1-5.
RAs are advised to take a note of the same and ensure compliance.
For and on behalf of BSE Ltd.
Meghana Kulkarni Dy. General Manager Membership Operations & Membership Compliance
Neeky Subramaniam Associate Manager Membership Operations & Membership Compliance
SEBI has introduced the deposit requirement for Research Analysts (RA) vide its circular no. SEBI/HO/MIRSD/ MIRSD-PoD-1/P/CIR/2025/004 dated January 08, 2025, respectively.
1) As per the aforesaid SEBI circulars, the deposit requirement details are as follows:
a) The deposit requirements for RAs shall be based on the maximum number of clients of the RAs on any day of the previous financial year, as under:
No. of clients | Deposit |
Up to 150 clients | INR 1 lakh |
151 to 300 clients | INR 2 lakh |
301 to 1,000 clients | INR 5 lakhs |
1,001 and above clients | INR 10 lakhs |
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b) The deposit shall be maintained with a scheduled bank with lien marked in favor of RAASB, in the manner and form as may be specified by RAASB i.e. BSE Limited.
c) The deposit amount may be revised for any change in applicable amount of deposit, based on the maximum number of clients in the previous financial year, at the latest by 30th April of the subsequent financial year.
d) The deposit requirements shall be reviewed by SEBI from time to time.
e) The existing RAs shall ensure compliance with the deposit requirement, at the latest by April 30, 2025, and the new applicants seeking registration as RA, the deposit requirement shall become effective immediately from the date of this circular.
2) In accordance with the point no.(b) stated above, the manner and form in which the deposit/s are proposed to be accepted from RAs is as follows:
a) The Fixed Deposit (FD) to be issued in the name of “BSE Ltd. A/c._______________________________________________________________
(Name of RA)”
b) FD may be maintained with any of the banks mentioned as per Annexure-1 (List of Banks) with lien marked in favor of “BSE Limited”.
c) The term of FD shall be for 5 years or more. Please instruct the Bank to auto renew the principal amount of the FD with the interest to be credited to the account of the RA. In case instruction is not given to the Bank, the principal along with the accrued interest shall be renewed by the Bank on maturity of the FD.
d) RAs shall share soft copy of the Fixed Deposit Receipt (FDR) on email [email protected] and mention in the subject “FDR towards deposit –
_______ (name of the entity)”. The original FDR shall be duly discharged by affixing revenue stamp of Rs.1 /- on the reverse of the FDR signed and stamped by the authorized signatory. Such original FDR along with the FDR letter from the Bank and covering letter Annexure – 2 shall be sent by the RAs to BSE’s regional / head office as per Annexure – 3.
e) Format of the FDR letter to be issued by the Bank as prescribed by the Exchange is attached as Annexure-4.
f) The FDR shall be auto renewal by the Bank. The Bank renews the FD on the maturity date. RAs shall instruct the Bank in advance for the issuance of renewal letter as per the prescribed format as per Annexure-5 which shall be submitted by the RA with the Exchange.
g) BSE shall send alerts/reminder mails to RAs to ensure renewal of the FDRs on time.
h) Based on the maximum number of clients available with RAs in the previous financial year, the deposit amount shall be modified as follows:
(i) In the event of an increase in the number of clients, RA will have an option to provide a new FDR with an additional amount or provide a new FDR with the consolidated amount as per the applicable deposit requirement.
(ii) Upon receipt of the original FDR with the consolidated amount, the old FDR shall be released by the Exchange.
(iii) In case of reduction in the number of clients, RA can provide new FDR with the reduced deposit requirement as stated above or continue to maintain the earlier deposit. In case RA provides the new FDR with a revised amount, their old FDR shall be released by the Exchange.
i) Such a deposit shall be available for utilization in case the RA fails to pay dues emanating out of arbitration and conciliation proceedings, if any, under the Online Dispute Mechanism or such other mechanism as may be specified by the Board.
List of Approved Banks
| List of Banks allowed for Fixed Deposit | |
| Sr. No | Name of the Bank |
| 1 | AU Small Finance Bank Ltd. |
| 2 | Axis Bank Ltd. |
| 3 | Bank Of Baroda |
| 4 | Bank Of India |
| 5 | Bank Of Maharashtra |
| 6 | Canara Bank |
| 7 | Citibank |
| 8 | DBS Bank |
| 9 | Deutsch Bank AG |
| 10 | HDFC Bank Ltd. |
| 11 | HSBC Bank Ltd. |
| 12 | ICICI Bank Ltd. |
| 13 | IDFC First Bank Ltd. |
| 14 | Indian Bank |
| 15 | IndusInd Bank Ltd. |
| 16 | J P Morgan Chase Bank |
| 17 | Kotak Mahindra Bank Ltd |
| 18 | Punjab National Bank |
| 19 | Standard Charter Bank |
| 20 | State Bank of India |
| 21 | The Federal Bank Ltd. |
| 22 | UCO Bank |
| 23 | Union Bank of India |
Format of the Cover Letter
(ON LETTER HEAD OF THE APPLICANT – TO BE DULY SIGNED AND STAMPED)
Date:
To,
BSE Ltd.
(mention address of the office where the original FDR is being submitted)
Ref. : RA Application ID (new applicant) / SEBI Registration No. : __________________
Dear Sir/ Madam,
Sub. : Submission of original Fixed Deposit Receipt (FDR)
I/We, _______________________ (name of the applicant /SEBI registered RA) hereby submit the following to RAASB as per the amended SEBI Research Analyst Regulations, 2013:
1. Original Fixed deposit Receipt (FDR), lien marked in favour of BSE Ltd.
(duly discharged by affixing revenue stamp of Rs.1 /- on the reverse of the FDR signed and stamped by the authorized signatory)
2. Bank letter
Maximum number of clients of the RA ______(Provide no. of clients)_____on any day of the previous financial year _________ (Mention the Financial year) ___
(Not applicable to new applicant)
The details of FDR are as below:
FDR No. | Name on the FDR | Tenure of FDR | Start date of FDR | Maturity date of FDR | Bank Name | Branch Name |
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Yours faithfully
For _______________
Authorised Signatory
Encl. : as above
BSE Addresses for the deposit of FDRs
| Details of address and contact person for sending Original Fixed Deposits requirement | ||||
| Sr. No. | BSE Addresses | Name of BSE official | Contact No. | Email ID |
| 1 | BSE Limited, Membership Department 20th Floor, Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400001 | Mr. George Karakkattil | 022 22725652 | [email protected] |
| Ms. Mansi Trivedi | 022 22725646 | [email protected] | ||
| 2 | BSE Limited, BSE Investor’s Service Center 101, 1st floor, Aggarwal Corporate Tower, 23, District Center,Rajendra Place New Delhi -110008 | Ms. Rajni Mishra | 011-25782116 / 9082819009 | [email protected] |
| 3 | BSE Limited, BSE Investors Protection Fund . Block – A, 1st Floor, 22, Camac Street , Kolkata – 700016, West Bengal | Mr. Pratyush Sengupta | 9674328348 | [email protected] |
| 4 | BSE Ltd ,Chaitanya Imperial A block , 8th floor , 610 , anna salai , Teynampet , Chennai-600018 | Mr. SENTHIL VR | 044-46088585/8879603309 | [email protected] |
Format of letter to be submitted by the concerned bank along with the instrument towards deposit of the Investment Advisers (IA) / Research Analysts (RA)
SEBI has introduced the deposit requirement for Investment Advisers (IA) vide its circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2025/003 dated January 08, 2025.
1) As per the aforesaid SEBI circulars, the deposit requirement details are as follows:
a) The deposit requirements for IAs shall be based on the maximum number of clients of the IAs on any day of the previous financial year, as under:
No. of clients | Deposit |
Up to 150 clients | ? 1 lakh |
151 to 300 clients | ? 2 lakhs |
301 to 1,000 clients | ? 5 lakhs |
1,001 and above clients | ? 10 lakhs |
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b) The deposit shall be maintained with a scheduled bank with lien marked in favor of IAASB, in the manner and form as may be specified by IAASB i.e. BSE Limited.
c) The deposit amount may be revised for any change in applicable amount of deposit, based on the maximum number of clients in the previous financial year, at the latest by 30th April of the subsequent financial year.
d) The deposit requirements shall be reviewed by SEBI from time to time.
e) The existing IAs shall ensure compliance with the deposit requirement, at the latest by June 30, 2025, and the new applicants seeking registration as IA, the deposit requirement shall become effective immediately from the date of this circular.
2) In accordance with the point no.(b) stated above, the manner and form in which the deposit/s are proposed to be accepted from IAs is as follows:
a) The Fixed Deposit (FD) to be issued in the name of “BSE Ltd. A/c._______________________________________________________________ (Name of IA)”
b) FD may be maintained with any of the banks mentioned as per Annexure-1 (List of Banks) with lien marked in favor of “BSE Limited”.
c) The term of FD shall be for 5 years or more. Please instruct the Bank to auto renew the principal amount of the FD with the interest to be credited to the account of the IA. In case instruction is not given to the Bank, the principal along with the accrued interest shall be renewed by the Bank on maturity of the FD.
d) IAs shall share soft copy of the Fixed Deposit Receipt (FDR) on email [email protected] and mention in the subject “FDR towards deposit –
_______ (name of the entity)”. The original FDR shall be duly discharged by affixing
revenue stamp of Rs.1 /- on the reverse of the FDR signed and stamped by the authorized signatory. Such original FDR along with the FDR letter from the Bank and covering letter Annexure – 2 shall be sent by the IAs to BSE’s regional / head office as per Annexure – 3.
e) Format of the FDR letter to be issued by the Bank as prescribed by the Exchange is attached as Annexure-4.
f) The FDR shall be auto renewal by the Bank. The Bank renews the FD on the maturity date. IAs shall instruct the Bank in advance for the issuance of renewal letter as per the prescribed format as per Annexure-5 which shall be submitted by the IA with the Exchange.
g) BSE shall send alerts/reminder mails to IAs to ensure renewal of the FDRs on time.
h) Based on the maximum number of clients available with lAs in the previous financial year, the deposit amount shall be modified as follows:
i) In the event of an increase in the number of clients, IA will have an option to provide a new FDR with an additional amount or provide a new FDR with the consolidated amount as per the applicable deposit requirement.
ii) Upon receipt of the original FDR with the consolidated amount, the old FDR shall be released by the Exchange.
iii) In case of reduction in the number of clients, IA can provide new FDR with the reduced deposit requirement as stated above or continue to maintain the earlier deposit. In case IA provides the new FDR with a revised amount, their old FDR shall be released by the Exchange.
I) Such a deposit shall be available for utilization in case the IA fails to pay dues emanating out of arbitration and conciliation proceedings, if any, under the Online Dispute Mechanism or such other mechanism as may be specified by the Board.
(FDR Renewal –Specimen)
(Bank’s Letter Head)
Date:
The General Manager
BSE Ltd.
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai – 400 001.
Dear Sir,
We refer to deposit receipt (FDR) No. ……………….. issued in the name of “BSE Ltd. A/c. …. (name of IA / RA) …….”
Sr. No. | FDR Number | Issue Date | Principal Amount (Rs.) | Maturity Date |
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The above FDR has been renewed for a further period of …… months/years under the auto renewal facility on the request of the IA/RA. Details are as follows :
Sr. No. | FDR Number | Issue Date | Principal Amount (Rs.) | Maturity Date | Maturity Amount |
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We hereby confirm that,
i. There is no lock in period for encashment of the said FDR and the lien on the said FDR has been created in favour of BSE Ltd. (BSE) only.
ii. The amount under the said FDR would be paid to BSE on demand without demure on or before or after the maturity of the said FDR without any reference to M/s. ….. (name of IA / RA)…….
iii. Old instrument will remain valid and no new instrument with new FDR No. —- is issued.
iv. The FDR is payable at Mumbai
v. Encashment by BSE, whether premature or otherwise would not require any clearance from M/s. (name of IA / RA) or any other authority/person.
vi. We agree that on encashment of FDR by BSE, the interest accrued will also be released to you.
vii. We undertake that at the time of encashment of aforesaid FDR No. ______________ by M/s. (name of IA / RA) or any other authority/person, whether premature or otherwise will be done only if the aforesaid FDR No. _____________ is accompanied with the release of lien letter issued by BSE.
viii. We undertake that the aforesaid FDR No. _____________ would stand automatically renewed by the Bank on the respective maturity dates.
ix. The abovementioned FDR issued in the favour of BSE Ltd. has not been funded by the bank.
Yours faithfully,
For …… (bank) …….
Authorised Signatory (with Bank’s stamp)
