The Securities Exchange Board of India (SEBI) on February 17, 2025, issued a notification regarding the Most Important Terms and Conditions (MITC) for Research Analysts.
SEBI) has mandated that Research Analysts (RAs) disclose the Most Important Terms and Conditions (MITC) of their research services to clients, as per Regulation 24(6) of SEBI (Research Analysts) Regulations, 2014. SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2025/004 dated January 08, 2025, outlines minimum mandatory terms to be disclosed, which have been standardized by the Industry Standards Forum (ISF) in consultation with RAASB and SEBI (Annexure A).
Key compliance requirements include:
Existing clients must be informed of the MITC by June 30, 2025, via email or other preservable communication.
RAs must incorporate MITC into their Terms and Conditions, obtain client consent, and ensure compliance with SEBI’s Circular dated January 08, 2025.
The circular is effective immediately and aims to protect investors and regulate the securities market.
[Notification No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/20]
