India's 'revolutionary' analyst regulations assessed

Author: Ashley Lee | Published: 17 Sep 2014

The Securities and Exchange Board of India (Sebi) has announced new analyst regulations, concluding months of consultation. They will have a marked effect on India’s capital markets.

The new regulations were released on September 1 and will take effect 90 days later. The rules are a first for India, and follow a flurry of negative reports from foreign research analysts that have resulted in large financial losses.

Their introduction also brings India inline with international standards.

The regulations are largely modeled on the US Financial Industry Regulatory Authority’s (Finra) rules on the separation of businesses, which requires disclosure of conflicts. "That’s quite revolutionary from an Indian perspective," said Ajay Vaidya, chief legal and compliance officer at Kotak Mahindra...