The share market today can be considered a dynamic financial platform for investors looking forward to building long-term wealth and savings. With millions of stocks being bought and sold every day, the share market can be taken as the perfect opportunity for first-time investors looking to try their hand at trading. Though considered a dynamic platform, the share market landscape is also complex and offers countless risks alongside the opportunities. Here’s where SEBI-registered analysts sweep in and save the day.
Let’s understand who exactly is a SEBI registered research analyst and what their role is.
Who Are Sebi-Registered Analysts?
SEBI stands for the Securities and Exchange Board of India. It is the topmost authority that regulates India’s capital markets. The primary agenda of the Securities and Exchange Board of India is to keep the best interests of investors at heart and ensure that all the trade practices that are being implemented are fair and transparent.
For this purpose, SEBI mandates individuals and firms that operate in the space of stock advisory and recommendations. They compulsorily require individuals or firms operating in this space to register with them as a SEBI-registered Research Analyst (RA) and only then will they be considered as qualified, trustworthy and professionals that offer investment advisory to the investors.
Role of SEBI-registered analysts
SEBI-registered research analysts have a comprehensive and thorough understanding of market fluctuations and financial instruments. They play an extremely crucial role in making informed decisions, especially when it comes to intraday trade calls.
- Research-Backed Recommendations:
The one thing that separates a SEBI research analyst from unregistered tipsters is that they thoroughly and regularly analyse the market trends, chart indicators, and real-time fluctuation data before actually providing advisory services to the investors.
- Regulatory Standards Compliant:
A SEBI registration automatically signifies trustworthiness and credibility. It implies that the firm or individual complies with the regulatory standards set by the authorities, which work by keeping the best interests of the investors.
- In-Depth Analysis:
Since SEBI-registered research analysts have a very comprehensive knowledge of how the share market operates, they provide in-depth analysis and advisory services to all their investor clients. Their expertise is what allows people to invest with informed decisions and peace of mind. Stock recommendations, sector analyses or investment strategies (short-term or long-term); these analysts have thorough knowledge of all that you intend to do to reach your financial goals.
- Custom Investment Strategies:
You can find hundreds of general tips, tricks, and advice on the share market investment online or via unregistered tipsters. But, a registered research analyst will provide you with custom and personalised investment strategies that are tailored to your financial goals as well as limitations.
- No Scams Or Frauds:
Association or registration with the SEBI comes with a tag of credibility. A SEBI registration leads to a significantly reduced risk of being presented with scams or fraud while investing in the share market.
In a market where there are multiple cases of fraud and scams daily, getting advice from SEBI-registered analysts becomes an indispensable option. Once approached, these analysts will act as your shield and protect you from harmful, risky and unsolicited stock market advice that could lead to losses.