SEBI exempts call recordings for institutional clients under Research Analyst Regulations, effective November 2026, reducing compliance burden without undermining oversight.
SEBI Eases Compliance for Research Analysts
In a move to reduce operational burden, SEBI has amended the Research Analyst (Prohibition of Insider Trading) Regulations, 2014, making call recordings optional for communications with institutional clients. The amendment, effective November 2026, acknowledges the existence of alternative audit trails in institutional settings.
The regulator noted that entities like mutual funds and FIIs maintain their own recording systems and internal compliance frameworks, rendering mandatory duplication redundant. However, all recommendations and material communications must still be documented in writing.
This relief is expected to streamline operations for research houses while preserving accountability. Firms should update their compliance manuals to reflect the change and ensure written confirmations remain robust for all analyst-client interactions.
