SEBI proposes easing call recording rules for research analysts

• Dushyant Sharma
• 19 May 2026
• 22 Views

On 18 May 2026, the Securities and Exchange Board of India (SEBI) proposed to ease the requirement for research analysts to maintain call recordings of communications they have with their institutional clients. This move intends to reduce compliance burden as well as improve ease of doing business for SEBI-registered research analysts. 

In a recent consultation paper, the market regulator proposed that research analysts (RAs) and research entities should no longer be required to keep call recordings of their communications with institutional investors. With that being said, they would still need to maintain other records of interactions like emails, SMS messages and any other legally verifiable documents. 

This proposed change would only affect institutional investors. The requirement to retain all records, including call recordings, will remain in place for retail clients as suggested by the market watchdog. SEBI stated that this proposal follows requests from market participants and the Industry Standards Forum for Research Analysts.

They argued that institutional investors are sophisticated entities with the necessary expertise as well as resources to independently assess research inputs and investment opportunities. SEBI also noted that, unlike retail investors, institutional clients are generally well-informed about their legal rights as well as the regulatory mechanisms available to protect them.

Furthermore, the regulator placed emphasis on the fact that the research analyst business does not involve client-specific investment advice, asset management or transaction execution. Thus, a risk-based approach to record keeping is deemed appropriate. To implement this specific proposal, SEBI has suggested amendments to the SEBI Research Analysts Regulations 2014. 

The regulator has also proposed using the definition of "institutional investor" from the SEBI Issue of Capital and Disclosure Requirements Regulations 2018. SEBI is seeking public feedback on this proposal until June 8 this year. 

Source: The Hindu Business Line