In today’s data-driven world, where access to information is not a problem, everyone’s a guru! Whether you’re browsing through social media, reading a blog, or chatting with your friend, you’ll find an abundance of ‘expert’ opinions on anything and everything. But here’s the catch – how much of it is backed by experience and research to qualify as advice? That’s where a research analyst steps in!
In simple terms, a research analyst is an individual who is equipped with the expertise to decode complex financial data and market trends. SEBI-registered research analysts stand out, and one needs to meet a stringent set of requirements and undergo tests post-training to assess their analytical skills.
Let’s dive deeper into the research analyst’s world and understand how a research analyst can help you manage your investments and stock portfolio.
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Who is a Research Analyst?
A research analyst is a professional responsible for researching and analysing a wide range of topics, such as market trends, consumer behaviour, financial data, and industry news. They gather and evaluate information from various sources to create reports, forecasts, and recommendations for their clients or organisations.
The duties of a research analyst include:
- Understanding their client’s or organisation’s needs,
- Analysing past trends,
- Forecasting the performance of stocks and commodities,
- Preparing reports on assets and securities for clients to use.
They use various methods to collect data, such as surveys and interviews, and perform statistical analysis on the gathered information.
Research analysts primarily work in the finance markets, analysing market conditions and trends to provide investment advice. In India, SEBI-registered research analysts are considered the most credible due to the board’s stringent requirements.
How Can a Research Analyst Help You Manage Your Portfolio?
A research analyst can be a valuable asset in managing your investment portfolio. Their expertise in market research and analysis can help you make informed decisions about which stocks or securities to buy, sell or hold. They have access to a wide range of financial data and tools to evaluate companies and their financial health, which can help identify potentially profitable investment opportunities.
Additionally, market research analysts keep track of news and trends in the financial industry, which allows them to provide timely advice and recommendations to help you optimise your portfolio performance. By working with a research analyst, you can benefit from their knowledge and experience to make sound investment decisions and achieve your financial goals.
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How to Become a Research Analyst?
A SEBI (Securities and Exchange Board of India) registered research analyst is an individual or entity that has obtained registration from SEBI. This registration allows them to offer well-researched investment advice or recommendations on securities, commodities or currencies. Once registered, the research analyst is allowed to prepare and publish research reports, provide investment advice, and make recommendations to clients or investors.
To become a SEBI-registered research analyst, an individual or entity must apply for registration with the Head Office or the concerned Regional Office/Local Office of SEBI under the jurisdiction of the applicant’s registered address. The Securities and Exchange Board of India (Research Analysts) Regulations, 2014 outline the requirements and procedures for obtaining and maintaining registration as a research analyst.
If you are also wondering how to become a SEBI-registered research analyst, below are the criteria:
A. Qualification
You must meet the following qualification requirements to be considered eligible for registration as a SEBI-registered research analyst:
- A professional qualification, PG degree, or postgraduate diploma in finance, accountancy, commerce, economics, business management, capital market, financial services, or markets, OR
- A professional qualification, PG degree, or PG diploma accredited by All Indian Council for Technical Education, NAAC, or National Board of Accreditation, or any other council/board/body formed under an Act of Parliament in India for this purpose, OR
- A professional qualification obtained by completing a PG program in the Securities Market from NISM for a minimum duration of 1 year, OR
- Graduation in any discipline with a minimum of 5 years of experience in activities related to financial products, markets, securities, or fund/asset/portfolio management.
B. Certification
To be a SEBI-registered research analyst, you must pass NISM- Series-XV Research Analyst Certification as required under Regulation 7(2) of the SEBI (Research Analyst) Regulations, 2014.
C. Net Worth/Capital Adequacy
Net worth is the sum of paid-up share capital and free reserves, but it doesn’t include revaluation reserves. Additionally, this value is reduced by the aggregate value of accumulated losses.
To apply for registration with SEBI, you must provide a net worth certificate from a CA. The certificate should not be more than 6 months old when filing the application.
Individual research analysts or partnership firms should have a net tangible assets minimum of Rs 1 lakh. Body corporate or LLP firms should have a net worth of not less than Rs 25 lakh.
Documents Required to Apply for SEBI Registration
Besides all the above-mentioned criteria, at the time of filing, you need to submit several documents, including proof of identity and address, qualification certificates, net worth certificates, ITR of the last three years, declarations of compliance with relevant regulations, standard disclosures, internal policy and procedure documents, business plan, and current activities details.
The application process also requires a registration fee apart from the documentation. Once the registration fee is paid, SEBI will issue the registration certificate.
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Types of applicant
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Application Fee
|
Registration Fee
|
|---|---|---|
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Individuals and partnership firms
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5,000
|
10,000
|
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LLPs and body corporates
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50,000
|
5,00,000
|
|
Proxy Advisers
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5,000
|
10,000
|
Conclusion
A research analyst plays a critical role in helping clients make informed decisions by providing accurate and reliable information. Their analytical skills and attention to detail are essential in performing their duties effectively. The demand for skilled research analysts will likely grow as the world becomes increasingly data-driven. So if you have a passion for data and enjoy solving complex problems, a career as a research analyst may be just what you are looking for.
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