Consultation Paper dated 18.05.2026
The Securities and Exchange Board of India (SEBI) has proposed amendments to the SEBI (Research Analysts) Regulations, 2014 to exempt Research Analysts (RAs) from the mandatory requirement of maintaining call recordings for interactions with institutional investors.
The proposal aims to reduce compliance burden while recognising the sophistication and risk assessment capabilities of institutional market participants.
1. Proposed Exemption From Call Recording Requirement
Under the proposal, Research Analysts would no longer be required to maintain audio recordings of calls or conversations conducted with institutional investors.
The proposed relaxation applies specifically to interactions involving institutional investors and is intended to rationalise record-keeping obligations for Research Analysts.
2. Recognition of Institutional Investors as Sophisticated Participants
SEBI has acknowledged that institutional investors are sophisticated and informed market participants with the ability to independently assess:
- Research-related risks
- Investment recommendations
- Market information and disclosures
On this basis, the regulator has proposed a differentiated compliance framework for interactions with such entities.
3. Other Record-Keeping Requirements to Continue
Although exemption from call recording has been proposed, Research Analysts will continue to be required to maintain other communication records for regulatory and compliance purposes.
Such records shall include:
- Emails
- SMS communications
- Legally verifiable electronic communications
- Other relevant interaction records
These records must be preserved for a period of five years in accordance with the regulatory framework.
4. Objective of the Proposal
The proposed amendment seeks to ease compliance obligations for Research Analysts while maintaining adequate regulatory oversight and audit trails through alternative communication records.
The move is intended to balance operational efficiency with investor protection and compliance requirements under the SEBI (Research Analysts) Regulations, 2014.
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