With just four months left to register themselves under new regulation, research analysts are still unclear on a few provisions the of Sebi (Research Analysts) Regulations, 2014. The regulation says research analyst needs to disclose holding of their ‘relatives’. But analysts remain unsure about who could be included in that bracket.

Apart from the Regulation 19 of the Research Analysts Regulations, 2014, which pertains to disclosures by research analysts, BSE Brokers’ Forum say that there should be a different set of regulations governing fundamental and technical analysts. “Sub-regulation (2) of Regulation 16, would effectively bar a technical analyst from giving a short-term call on a security if he has traded in the security in the last 30 days,” said Alok Churiwala, vice-president at BSE Brokers’ Forum.

“If the technical analyst can only give a call after 30 days of his trade in the security, it would deprive the investor of timely recommendation,” he said, adding that the forum will write to Sebi.

Under sub-regulation (2) of Regulation 16, research analysts, independent research analysts, individuals employed as research analyst by research entity or their associates shall not deal or trade in securities that the same analyst recommends or follows within thirty days before and five days after the publication of a research report.

While Sebi had issued frequently asked questions on the Research Analysts (Regulations) on December 9, 2014, just a week after the regulations came into force, brokers and analysts still have concerns.

Independent analyst. AK Prabhakar said it is possible for an analyst to disclose his personal holdings and that of his wife and children, but it may not be easy to disclose his parents’ holdings as they might be living separately.

An official with a domestic brokerage said that they had certain concerns with the Research Analysts (Regulations) and had made representations to Sebi and exchanges.

Sub-regulation (4) of Regulation (18) bar research analysts from participating in road shows. According to Churiwala, “A road show could give an analyst deeper insight into the company, which would in turn help investors.”

The Research Analysts (Regulations) were issued on September 1, 2014, nearly a year after Sebi issued its consultation paper on the regulations.