SEBI MITC IA & RA
Most Important Terms and Conditions (MITC) for Research Analysts
As mandated by the Securities and Exchange Board of India (SEBI) vide Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/20 dated February 17, 2025.
Annexure A
[Forming part of the Terms and Conditions for providing research services]
1. Scope of Services
These terms and conditions, and consent thereon are for the research services provided by the Research Analyst (RA). The RA cannot execute/carry out any trade (purchase/sell transaction) on behalf of the client. Thus, clients are advised not to permit the RA to execute any trade on their behalf.
2. Fee Limits
The fee charged by the RA to the client will be subject to the maximum amount prescribed by SEBI / Research Analyst Administration and Supervisory Body (RAASB) from time to time (applicable only for Individual and HUF clients).
- The current fee limit is Rs. 1,51,000 per annum per family of client.
- The fee limit does not include statutory charges.
- The fee limits do not apply to non-individual clients / accredited investors.
3. Advance Fees
The RA may charge fees in advance if agreed by the client. Such advance shall not exceed the period stipulated by SEBI (currently one quarter). In case of premature termination of services by either the client or the RA, the client shall be entitled to a refund of proportionate fees for the unexpired period.
4. Payment Methods
Fees may be paid through specified modes such as cheque, online bank transfer, UPI, etc. Cash payments are not permitted. Clients may also make payments through the Centralized Fee Collection Mechanism (CeFCoM) managed by BSE Limited.
5. Conflict of Interest
The RA shall comply with applicable regulations, circulars, and directions issued by SEBI and RAASB regarding disclosure and mitigation of actual or potential conflicts of interest. The RA shall endeavor to promptly inform the client of any such conflict that may affect the services being rendered.
6. Prohibited Schemes
Any assured, guaranteed, or fixed returns schemes or any other similar schemes are prohibited by law. The RA shall not offer any such schemes to the client.
7. No Guarantee of Returns
The RA does not guarantee returns, profits, accuracy, or risk-free investments. All opinions, projections, and estimates are based on analysis of available data and are subject to assumptions as of the date of the research report.
8. Market Risk
Investments based on recommendations are subject to market risks. Recommendations do not provide assurance of returns. The client shall rely on their own judgment and assessment before making any investment decision. No claim can be made against the RA for any losses incurred.
9. Regulatory Certifications
SEBI registration, enlistment with RAASB, and NISM certification do not guarantee the performance of the RA or assure returns to the client.
10. Grievance Redressal
For any grievances:
- Step 1: Contact the RA using the details available on the website or the grievance redressal matrix.
- Step 2: If unresolved, lodge a complaint on SEBI's SCORES platform: SEBI SCORES Portal
- Step 3: If still unresolved, use the Online Dispute Resolution (ODR) platform: SmartODR Platform
11. Client Responsibilities
Clients are required to keep their contact details, including email address and mobile number, updated with the RA at all times.
12. Security of Credentials
The RA shall never ask for the client's login credentials or OTPs for their Trading Account, Demat Account, or Bank Account. Clients must not share such information with anyone.
Most Important Terms and Conditions (MITC) for Investment Advisers
As mandated by the Securities and Exchange Board of India (SEBI) vide Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/19 dated February 17, 2025.
Annexure A
[Forming part of the Investment Advisory Agreement]
1. Acceptance of Payments
The Investment Adviser (IA) shall only accept payments towards its fees for Investment Advisory Services and is not permitted to accept funds or securities in its account on the client's behalf.
2. No Guarantee of Returns
The IA does not guarantee returns, accuracy, or risk-free investments. All advice is subject to market risks, and there is no assurance of any returns or profits.
3. Prohibited Schemes
Any assured/guaranteed/fixed returns schemes or any other schemes of similar nature are prohibited by law. No scheme of this nature shall be offered to the client by the IA.
4. Scope of SEBI Purview
Investment advice only related to securities shall fall under the purview of SEBI. In case of any services offered by IA related to products/services not under the purview of SEBI, IA shall make disclosure to the client and take appropriate declaration and undertaking from the client that such products/services do not come under regulatory purview of SEBI and that no recourse is available to the client with SEBI for grievances related to such products/services.
5. Scope of Services
This agreement is for the investment advisory services provided by the IA. The IA cannot execute/carry out any trade (purchase/sell transaction) on behalf of the client without his/her/its specific and positive consent on every trade. Thus, the client is advised not to permit IA to execute any trade on his/her/its behalf without explicit consent.
6. Fee Limits
The fee charged by IA to the client will be subject to the maximum amount prescribed by SEBI / Investment Adviser Administration and Supervisory Body (IAASB) from time to time (applicable only for Individual and HUF clients).
- The current fee limit under Fixed Fee mode is Rs. 1,51,000 per annum per family of client. Under Assets under Advice (AUA) mode, maximum fee limit is 2.5% of AUA per annum per family of client.
- The IA may change the fee mode at any time with the client's consent; however, the maximum fee limit in such cases shall be the higher of the fee limit under the fixed fee mode or 2.5% of AUA per annum per family of client.
- The fee limits do not include statutory charges.
- The fee limits apply only for investment advice related to securities under purview of SEBI.
- The fee limits do not apply to a non-individual client / accredited investor.
7. Advance Fees
IA may charge fees in advance if agreed by the client. Such advance shall not exceed the period stipulated by SEBI (currently a maximum of two quarters). In case of premature termination of the IA services by the client or the IA, the client shall be entitled to seek refund of proportionate fees only for the unexpired period. However, IA is entitled to retain a maximum breakage fee of not greater than one-quarter fee.
8. Payment Methods
Fees to IA may be paid by the client through any of the specified modes like cheque, online bank transfer, UPI, etc. Cash payment is not allowed. Optionally the client can make payments through Centralized Fee Collection Mechanism (CeFCoM), managed by BSE Limited (i.e. currently recognized IAASB).
9. Client Financial Information
The IA is expected to know the client's financial details for providing services. Hence, the client is required to share the financial information (e.g. income, existing investments, liabilities, etc.) with the IA.
10. Risk Profiling
The IA is required to carry out the client's risk profiling and suitability analysis before providing services and thereafter on an ongoing basis. The services provided will be in line with the assessed risk profile. IA shall also communicate the assessed risk profile to the client.
11. Conflict of Interest
As part of conflict of interest management, the client or the client's family members will not be provided any distribution services by IA or any of its group entity/family members. IA shall, wherever available, advise direct plans (non-commission based) of products only. The IA shall endeavor to promptly inform the client of any conflict of interest that may affect the services being rendered to the client.
12. Grievance Redressal
For any grievances:
- Step 1: Contact the IA using the details available on the website or the grievance redressal matrix.
- Step 2: If unresolved, lodge a complaint on SEBI's SCORES platform: SEBI SCORES Portal
- Step 3: If still unresolved, use the Online Dispute Resolution (ODR) platform: SmartODR Platform
13. Regulatory Certifications
The SEBI registration, enlistment with IAASB, and NISM certification do not guarantee the performance of IA or assure returns to the client.
14. Client Responsibilities
Clients are required to keep contact details, including email id and mobile number/s updated with the IA at all times.
15. Security of Credentials
The IA shall never ask for the client's login credentials and OTPs for the client's Trading Account, Demat Account and Bank Account. Never share such information with anyone including IA.
Client Acknowledgement
By proceeding, you confirm that you have read, understood, and agreed to the Most Important Terms and Conditions (MITC) for both Investment Advisers and Research Analysts as prescribed by SEBI.
For more information about SEBI regulations, please visit SEBI Official Website