Stock exchanges can now be recognized as Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body (IAASB) for administering and supervising Research Analysts (RAs) and Investment Advisors (IAs), respectively. What is the minimum net worth required for recognition as an IAASB/RAASB under the new rules introduced by SEBI?

The correct answer is Rs 250 crore.

In News

• SEBI has mandated that stock exchanges seeking recognition as Research Analyst Administration and Supervisory Body (RAASB) or Investment Adviser Administration and Supervisory Body (IAASB) must have a minimum net worth of Rs 250 crore.

Key Points

• The new SEBI rules stipulate that a net worth of Rs 250 crore is required for exchanges seeking recognition as RAASB or IAASB to oversee the operations of Research Analysts (RAs) and Investment Advisors (IAs).
• This net worth requirement ensures that exchanges have the financial stability and resources to handle the regulatory responsibilities of overseeing RAs and IAs effectively.
• The inclusion of such a requirement reflects SEBI's emphasis on enhancing the integrity and professionalism of the financial advisory and research industry.
• This measure is part of SEBI’s ongoing efforts to strengthen the regulatory framework for investment advisory services and research analysts in India.

Additional Information

• Research Analyst (RA)
  • A Research Analyst is a professional responsible for analyzing financial information and providing recommendations regarding investment opportunities.
• Investment Adviser (IA)
  • An Investment Adviser provides personalized financial advice to clients regarding investments, wealth management, and portfolio diversification.
• SEBI's Role
  • SEBI (Securities and Exchange Board of India) is the regulatory authority responsible for overseeing securities markets, protecting investors, and promoting market integrity in India.