How to Become a NISM Research Analyst: Step-by-Step Guide

NISM Research Analyst, NISM Registration

How to Become a NISM Research Analyst: NISM Registration

In today’s fast-paced financial world, where markets are constantly evolving, staying ahead of the curve as an investor is a challenging yet rewarding endeavor. To make informed investment decisions, it’s essential to access credible and well-researched information. This is where SEBI registered research analysts come into the picture.

It is easy but rewarding to become a SEBI registered research analyst. In this article, we will explore the process of becoming a SEBI registered research analyst, emphasizing the importance of this designation for both professionals and investors.

Also, read SEBI registered research analyst: is it good to take their stock picks?

How to Become a NISM Research Analyst

SEBI, the Securities and Exchange Board of India, plays a vital role in regulating and overseeing India’s securities and financial markets. The SEBI registration for research analysts is a mechanism to ensure the quality, accuracy, and integrity of financial research conducted in India. It not only benefits analysts by enhancing their professional credibility but also provides significant advantages to investors seeking reliable guidance.

Also, read Redefine RSI Trading Strategies

NISM Research Analyst (equity research analyst)

If you are interested in subjects like finance, and the stock market, it is easy to pass the NISM examination with little effort. However, the important is to gain the trust of your clients after getting registered. SEBI registered research analyst are nism research analyst. The individual has to pass the nism research analyst exam to be a registered analyst with SEBI. It is important to understand the NISM registration process to get through the exam.

Based on SEBI Regulation 3(1), no person shall act as a research analyst or research entity or hold himself out as a research analyst unless he has obtained a certificate of registration from SEBI on and from the commencement of RA Regulations unless an exemption specifically applies. Here is the SEBI notification.

The independent research analyst or research entity (intermediary) who is engaged in providing research reports or research analyses is required to make an application for registration under RA Regulations.

Now, let’s delve into the process of “How to Become a SEBI Registered Research Analyst”, or in short to become a equity research analyst, highlighting the steps involved:

How to Become SEBI registered research analyst

NISM research analyst exam

  • NISM Registration/ SEBI Registered Analyst Process
    • NISM registration is mandatory for an individual to attend the exam or to be the NISM research analyst before applying to SEBI for a certification.
  • NISM research analyst eligibility:
    • Begin by acquiring the requisite educational qualifications, typically a bachelor’s degree in finance, economics, or related fields is enough to appear for the exam.
    • The higher the qualification is better. Many people with professional qualifications such as a postgraduate degree in finance, accountancy, commerce, economics, business management, capital market, financial services, or Chartered Accountant are joining this profession now.
  • Relevant Work Experience:
    • SEBI typically requires a minimum of five years of work experience in the financial services industry. This experience should be in areas like equity research, investment advisory, or portfolio management.
  • Clearing NISM Series XV Research Analyst Examination:
    • The National Institute of Securities Markets (NISM) conducts the Series XV Research Analyst Examination. Passing NISM Series XV Research Analyst Examination is a crucial step towards SEBI registration.
    • NISM Series XV Research Analyst Examination is of 100 total marks. The questions consist of 92 multiple-choice questions with 1 mark each and 2 case-based questions (4 questions in each case with 1 mark each).
  • Other requirements to become a SEBI registered research analyst includes:
    • Knowledge of risk management and experience in markets is a plus

After understanding the minimum criteria for appearing to become a SEBI registered research analyst, You need to clear the NISM examination. Follow the below SEBI registered research analyst process after passing the NISM examinations. Just to update you that an equity research analyst is same as NISM research analyst. Once you pass the NISM exam and got the registration number from SEBI, you can analyze and advise clients on equity market. Hope this helps.

Also, Read Identify Golden Crossovers stocks using free tools

SEBI registered research analyst process: NISM registration

  • Application and nism registration research analyst:
    • After successfully clearing of the NISM Series XV Research Analyst Examination, you can submit an application to SEBI for registration. It’s important to ensure that your application includes all necessary documentation and meets the regulatory requirements.
    • Form A shall be filed with the Head Office (HO) or the concerned Regional Office(RO) / Local Office(LO) of SEBI  under the jurisdiction where the registered address of the applicant. See the SEBI regional office addressed in the link here.
  • What applicants need to submit in the registration process
    • Form A appropriately filled, numbered, duly signed, and stamped.
    • Application  fees  as  specified  in  the  Second  Schedule  of  SEBI  (Research Analyst)  Regulations,  2014  by  way  of  bank  draft  in favor of  “The Securities and Exchange Board of India”
  • SEBI shall take into account all the requirements as specified in the Regulations to consider the grant of registration.
  • Once SEBI approves the registration for a research analyst, the applicant must pay a registration fee of Rs.5,00,000/- (If the applicant is a body corporate or Limited Liability Partnership Firm) and  Rs.10,000/- (If the applicant is an Individual, partnership firm or proxy adviser)  by way of bank draft in favor of “The Securities and Exchange Board of India”.

Also Read How to Identify Golden Crossover Stocks?

Once SEBI accepts your registration documents and gives you the registration number, it is essential to stay updated with changing market dynamics and regulations. Engage in continuous learning and development to enhance your skills and knowledge.

These are the minimum requirements to qualify to be a SEBI registered research analyst. However, these qualifications don’t suffice market requirements to grow your money which include knowledge of risk management, experience in markets, etc.

So, it is always best to check the experience level, and past performance before trusting any SEBI registered research analyst to invest your money. It is important to build trust among your clients to be a successful research analyst. As a fresher, the salary of a SEBI registered research analyst would be about INR 5,000,00 per annum.

Becoming a NISM Equity Research Analyst

Become a SEBI registered research analyst is a pathway to professional growth and an essential step towards ensuring the highest standards in financial research. Investors can benefit greatly from this process by gaining access to credible, unbiased, and informed advice, reducing risks associated with financial decisions.

Whether you are an aspiring analyst or an investor seeking reliable guidance, remember that SEBI registration is not just about compliance; it’s about raising the bar in the financial industry. By following the guidelines and embracing the principles of ethical research, you can contribute to building a more transparent and trustworthy investment ecosystem. In a world where information is power, SEBI-registered research analysts are the gatekeepers of sound financial knowledge, supporting investors in their journey to prosperity.

FAQ on How to Become a SEBI Registered Research Analyst

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