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SEBI Mulls Reversing Research Fee Unbundling
21 Nov
Summary
- SEBI considering reversal of plan to separate analyst research fees.
- Industry feedback suggests unbundling attempts failed in developed markets.
- Revisions to Stock Broker Regulations to be discussed December 17.
The Securities and Exchange Board of India (SEBI) is reportedly reconsidering its initiative to separate analyst research fees from brokerage charges. Sources indicate that industry participants have shared concerns, citing a lack of success with similar unbundling efforts in established financial markets. This suggests a potential policy reversal if the current proposal is deemed impractical.
The SEBI board is scheduled to review potential amendments to the 1992 Stock Broker Regulations on December 17. The regulator's objective is to eliminate regulatory overlaps, simplify compliance burdens, and enhance clarity within existing rules.
Furthermore, the SEBI may also re-evaluate existing norms concerning short selling and the Stock Lending & Borrowing (SLB) framework, which has seen limited utilization since its inception. The market regulator will also monitor futures and options market data closely following recent curbs.
