SEBI Proposes Relaxation in Call Recording Rules for Research Analysts

The Securities and Exchange Board of India (SEBI) has proposed easing compliance norms for research analysts by removing the requirement to maintain call recordings of interactions with institutional investors, as per PTI reports. The proposal was issued through a consultation paper released on Monday. 

At present, research analysts (RAs) and research entities are required to preserve records of all communication with clients and prospective clients for a period of 5 years.  

The records include telephone recordings, emails, SMS messages, and other legally verifiable documents. 

Existing Rules to Continue for Retail Clients 

The proposed relaxation is limited to institutional investors. SEBI said research analysts would continue to maintain complete communication records, including call recordings, for retail and other non-institutional clients. 

According to the regulator, the existing framework for preserving communication records was introduced to support investor protection, supervisory monitoring, and grievance redressal. 

SEBI noted in the consultation paper that institutional investors generally have established due diligence systems and the ability to independently assess research reports and investment opportunities. 

Industry Representations Led to Proposal 

The proposal follows representations received from market participants and the Industry Standards Forum for Research Analysts. Stakeholders had sought relief from the operational burden linked to maintaining large volumes of recorded conversations with institutional clients. 

The consultation paper stated that institutional investors are considered sophisticated market participants with access to specialised teams, research capabilities and legal resources under securities laws. 

SEBI also observed that the business of research analysts does not involve activities such as client-specific investment advice, asset management, or execution of transactions. 

Amendments Suggested to Regulations 

The regulator has proposed amendments to the SEBI (Research Analysts) Regulations, 2014, along with related provisions under the Master Circular for Research Analysts. 

As part of the proposal, SEBI plans to align the definition of “institutional investor” with the definition already specified under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. 

Even if the changes are implemented, research analysts would still need to preserve alternative records of communication with institutional investors wherever available, including emails and written correspondence. 

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Conclusion 

SEBI has sought public comments on the proposal until June 8, 2026. The regulator will review stakeholder feedback before finalising the proposed amendments to research analyst regulations. 

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