What is Securities Research?
Securities research is the systematic analysis of financial instruments (equity, debt, derivatives, commodities) to help investors make informed decisions. Research analysts study company financials, industry dynamics, macroeconomic factors, and market conditions to arrive at investment recommendations — typically Buy, Hold, or Sell — with a price target.
SEBI RA Regulations, 2014
SEBI introduced the Research Analyst framework in 2014 to professionalise equity research in India. Key provisions:
- All individuals/firms publishing investment recommendations commercially must register with SEBI as RAs
- NISM Series XV certification is mandatory (revised curriculum effective January 20, 2026)
- Minimum qualification: PG degree in finance/economics OR 5 years relevant experience in financial analysis
- Registration fee: ₹10,000 (individual); ₹5 lakh (body corporate)
Buy-side vs Sell-side Research
| Feature | Sell-side | Buy-side |
|---|---|---|
| Employer | Brokerages, investment banks | Mutual funds, PMS, insurance, hedge funds |
| Client | External — fund managers, HNIs | Internal — portfolio managers of same firm |
| Output | Published reports, earnings models | Internal memos, portfolio recommendations |
| SEBI RA Registration | Mandatory (publishes for clients) | Not always required (internal use) |
| Revenue model | Brokerage income, subscription fees | Included in fund management role |
Key Disclosure Requirements (2023 Amendment)
- Personal holdings: Disclose if analyst/family member holds stock covered
- Firm holdings: Disclose if employer holds >1% of company covered
- Investment banking conflict: If firm managed IPO/FPO of covered company in past 12 months
- Compensation disclosure: If RA's compensation is linked to investment banking revenue
- Rating change: Any change from Buy→Hold or Hold→Sell must be explicitly flagged