Sebi Eases Call Recording Rules For Analysts

Mumbai The Securities and Exchange Board of India (Sebi) on Friday relaxed the mandatory requirement for research analysts to maintain call recordings of their interactions with institutional investors, aiming to reduce compliance burdens and improve ease of doing business. In a circular, the market regulator said research analysts and entities would no longer be required to mandatorily maintain recordings of calls involving institutional investors. The change eases a specific record-keeping obligation for market research professionals and firms dealing with institutional clients. However, Sebi clarified that the broader requirement to maintain records of interactions with clients will continue. Research analysts and entities must preserve records of their communications with all clients, including prospective clients, through legally verifiable methods. These records may include signed physical documents, emails, SMS messages, call recordings or other acceptable forms of documentation. The revised provision therefore removes the mandatory call-recording requirement for institutional investor interactions without eliminating the obligation to maintain evidence of client communications. The decision is intended to streamline compliance procedures for research analysts while retaining documentation requirements that support accountability and verification. Maintaining verifiable records remains important for establishing the nature of communications between analysts and clients, particularly when questions arise about research recommendations or professional interactions. The relaxation could reduce the administrative and operational effort involved in preserving call recordings for institutional investor discussions. At the same time, analysts and entities will need to ensure that their systems continue to capture and retain appropriate records through permitted channels. The circular marks a change in how research analysts must document interactions with institutional investors, while preserving the wider framework for client communication records. Firms will continue to be responsible for maintaining records that can be legally verified.

"Research analysts and entities will no longer be mandatorily required to maintain call recordings of interactions with institutional investors." - Securities and Exchange Board of India (Sebi), market regulator.