udit6969/indian-regulatory-bfsi-benchmark-v1 huggingface dataset:
Regulator: SEBI

MASTER CIRCULAR --- SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/95 June 27, 2025 To, All Research Analysts Research Analysts Administration and Supervisory Body (RAASB) Dear Madam / Sir, Subject: Master Circular for Research Analysts a) Anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular; b) Any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular; c) The previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violation committed against the rescinded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded circulars have never been rescinded. aradhanad@sebi.gov.in 1. Guidelines for Research Analysts1 The Research Analysts shall ensure compliance with the following guidelines specified under the SEBI (Research Analysts) Regulations, 2014 (hereinafter referred to as “RA Regulations”): Regulation 7 of the RA Regulations specifies the minimum qualification and certification requirements for RAs. It is clarified that the revised qualification requirements shall not be required to existing individual RAs, Principal officer of non-individual RAs or research entity, individuals employed as research analysts and partners of research analyst, if any, engaged in providing research services. However, they shall hold NISM certifications and comply with other conditions specified under Regulation 7(3) of the RA Regulations.

Question: Under which regulation is Research Analysts dealt with?
Answer: Regulation 7
Regulator: SEBI

1.6.1 Opening of HUF Demat Account --- a) The Demat account shall be opened in the name of HUF entity as the name of entity appears on the PAN Card. The BO account should also mention the name of the Karta of the HUF. The PAN details of both the HUF entity and Karta of HUF shall be submitted to the DP. a) In the event of death of Karta of HUF, the name of the deceased Karta in the BO account shall be replaced by the new Karta of the HUF who in such a case shall be eldest coparcener in the HUF or a coparcener who is appointed as Karta by an agreement reached amongst all the coparceners of the HUF29. b) The new Karta shall submit the new list of members, a notarized copy of death certificate of the deceased Karta and a no objection from the surviving members of the HUF for him/her to act as Karta of the HUF. c) In the event of death of Karta of HUF, the existing BO account need not to be closed and the same account may continue. The death of Karta shall not mean that the securities lying in the BO account of the HUF is deemed to have divided among coparceners as if the partition has taken place. a) A total or partial partition shall be recognized only if a claim to that effect is made by one or more coparceners. b) An intimation of a total or partial partition shall be accompanied by a signed letter mentioning the names of the members and their confirmation of a partition having taken place. c) In case of partial partition of the HUF, if desired by one or more coparceners, the new Karta shall transfer shares to the said coparceners who seek partition and the BO account of the HUF shall continue. The account of such coparceners shall be treated as their individual accounts. 28 Reference: SEBI Letter SEBI/HO/MRD/DP/OW/2016/25739/1 & 25740/1 dated September 14, 2016 29 Reference: SEBI Circular SEBI/HO/MRD/MRD-POD-2/P/CIR/2022/114 dated August 26, 2022 d) In case of full partition of the HUF, the shares shall be divided amongst all the coparceners in the manner specified by the applicant subject to fulfilment of Para 1.6.3 (c) above and the HUF account shall cease to exist. a. DP shall send at least one annual statement of holding through email in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year. However, where an investor does not wish to receive the holding statement through email, option shall be given to the investor to receive the same in physical form at the registered address. 30 Reference: SEBI Letter SEBI SMDRP/NSDL/4615 /2000 dated March 13, 2000 31 Reference: SEBI Circular CIR/MRD/DP/22/2012 dated August 27, 2012 32 Reference: SEBI Circular CIR/MRD/DP/21/2014 dated July 01, 2014 33 Reference: SEBI Circular SEBI/HO/MRD-Pod2/CIR/P/2024/93 dated July 01, 2024

Question: What is provided under paragraph 1.6.1 of the Master Circular for Depositories concerning Opening of HUF Demat Account?
Answer: a) The Demat account shall be opened in the name of HUF entity as the name of entity appears on the PAN Card.
Regulator: SEBI

4.46.1.1 Investor Protection Fund --- A. Constitution and Management of the IPF i. All depositories shall establish an IPF. The IPF of the depository shall be administered through separate trusts created for the purpose. ii. The IPF Trust of depository shall consist of five trustees as under: a) Three Public Interest Directors (PIDs); b) One representative from the investor associations recognized by SEBI; and c) Chief Regulatory Officer or Compliance Officer. iii. The maximum tenure of a trustee (excluding the Chief Regulatory Officer or Compliance Officer, whose trusteeship would be co-terminus with their service) shall be five years or as specified by SEBI. iv. The depository shall provide the secretariat for their IPF Trusts respectively. v. The depository shall ensure that the funds in the IPF are well segregated and that their IPF is immune from any liabilities of the depository. Further, supervision of utilization of IPF and interest or income from IPF will rest with the IPF Trust. B. Contribution to IPF of Depository i. The following contributions shall be made by the Depository to the IPF: a. 5% of their profits from depository operations every year. b. All fines and penalties recovered from Depository Participants (DPs) and other users including clearing member pool account penalty as specified in SEBI circular no. SMDRP/Policy/Cir-05/2001 dated February 01, 2001. c. Interest or income received out of any investments made from the IPF. d. Funds lying to the credit of IPR (Investor Protection Reserve) / BOPF (Beneficial Owners Protection Fund) of the Depository or any other such fund / reserve of the Depository shall be transferred to IPF. 192 Reference: SEBI Circular SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/81 dated May 30, 2023 (superceded SEBI Circular SEBI/HO/MRD/DP/CIR/P/2016/58 dated June 07, 2016) e. Any other contribution as may be specified by SEBI from time to time. C. Utilization of IPF and interest or income from IPF i. The amount in IPF and any interest or income generated from the IPF of the depositories shall be utilized for the purposes as stated in the table below: D. Deployment of Funds of IPF Depositories i. Funds of the IPF Trust shall be invested in instruments such as Central Government securities, fixed deposits of scheduled banks and any such instruments which are allowed as per the investment policy approved by the governing boards of depository. The investments shall be adequately diversified with single issuer exposure, excluding Government securities, not exceeding 10% of the IPF corpus. The investment policy shall be devised

Question: In the Master Circular for Depositories, what does section 4.46.1.1 state about Investor Protection Fund?
Answer: A. Constitution and Management of the IPF i. All depositories shall establish an IPF.
Regulator: SEBI

4.41.4 Measures taken to strengthen the cyber resilience of MIIs182 --- Kindly refer SEBI Circular Number SEBI/HO/ITD- 1/ITD_CSC_EXT/P/CIR/2024/113 dated August 20, 2024 on Cybersecurity and Cyber Resilience Framework for SEBI Regulated Entities (REs). Kindly refer SEBI Circular Number SEBI/HO/ITD- 1/ITD_CSC_EXT/P/CIR/2024/113 dated August 20, 2024 on Cybersecurity and Cyber Resilience Framework for SEBI Regulated Entities (REs).184

Question: What does paragraph 4.41.4 of the Master Circular for Depositories cover regarding Measures taken to strengthen the cyber resilience of MIIs182?
Answer: Kindly refer SEBI Circular Number SEBI/HO/ITD- 1/ITD_CSC_EXT/P/CIR/2024/113 dated August 20, 2024 on Cybersecurity and Cyber Resilience Framework for SEBI Regulated Entities (REs).
Regulator: SEBI

4.33.1 Depository System Review Committee (DSRC) was constituted by SEBI to --- undertake a comprehensive review of the depository system of Indian Securities market. with regard to the inspection of depository participants (DPs). Considering the recommendations of the committee, it has been decided that depositories shall ensure the following while inspecting their DPs. Inspection Areas and Sample Size as mentioned below:

Question: What does paragraph 4.33.1 of the Master Circular for Depositories cover regarding Depository System Review Committee (DSRC) was constituted by SEBI?
Answer: undertake a comprehensive review of the depository system of Indian Securities market. with regard to the inspection of depository participants (DPs).
Regulator: SEBI

4.29.7.4.4 Security Controls --- a. Secured e-mail with other entities such as SEBI, other partners b. Email Archival Implementation a. Defined and documented policies and procedures for managing access to applications and infrastructure –PDC, DRS, NS, branches (including network, operating systems and database) and approved by relevant authority b. Review of access logs c. Access rights and roles review procedures for all systems d. Segregation of Duties (SOD) matrix describing key roles e. Risk acceptance for violation of SOPs and alternate mechanism put in place f. Privileged access to system and record of logs, g. Periodic monitoring of access rights for privileged users h. Authentication mechanisms used for access to systems including use of passwords, One Time Passwords (OTP), Single Sign on, etc. i. Any other controls, as deemed fit, by the MII a. Comparison of changes in transaction volumes since previous audit b. Review of systems (hardware, software, network) performance over the period c. Review of the current volumes against the last performance test and against the current system utilization a. Business Continuity Planning (BCP) manual, including Business Impact Analysis (BIA), Risk Assessment and Disaster Recovery (DR) process, Roles and responsibilities of Incent Response Team (IRT) /Crisis Management Team (CMT), employees, support/outsourced staff. b. Implementation of policies c. Back-up procedures and recovery mechanism using back-ups. d. Storage of Back-up (Remote site, DRS etc.) e. Redundancy – Equipment, Network, Site etc. f. DRS installation and Drills - Management statement on targeted resumption capability (in terms of time required & extent of loss of data) g. Evidence of achieving the set targets during the DR drills in event of various disaster scenarios. h. Debrief / review of any actual event when the DR/BCP was invoked during the year i. User awareness and training j. Is Recovery Time Objective (RTO) /Recovery Process Objective (RPO) during BIA documented? k. Is annual review of BCP-DR or in case of major change in business/ infrastructure undertaken? l. Is quarterly review regarding implementation of BCP policy done by Standing Committee of Technology (SCOT) of the MII? m. Testing of BCP-DR plan through appropriate strategies including simulations, DR drills, system recovery, etc. n. Is the recordkeeping of quarterly DR drills, live trading sessions from DRS being maintained? o. Is BCP-DR policy document prepared and implemented in line with SEBI circular on BCP and DR of MII?

Question: What is provided under paragraph 4.29.7.4.4 of the Master Circular for Depositories concerning Security Controls?
Answer: a. Secured e-mail with other entities such as SEBI, other partners b. Email Archival Implementation a.
Regulator: SEBI

4.72.13.1 Cyber Security breaches, cyber-attacks and any other cyber security incidents --- occurring on account of non-compliance of SEBI cyber security policies and guidelines and delay in reporting the Root Cause Analysis to SEBI in case of breaches, attacks and incidents. For the above, a “Financial Disincentive of Rs.10,000,00/- {ten lakhs} shall be levied for i. each such cyber security breach, cyber-attack or any other cyber security incident on account of non-compliance of SEBI cyber security policies and guidelines ii. delay in reporting the Root Cause Analysis to SEBI in case such breaches, attacks and incidents. iii. for cyber security breaches, cyber-attacks and any other cyber security incidents occurring otherwise and where there is a delay in submission of the RCA reports. SEBI prescribed a time period of two weeks from the date of the incident for submission of RCA reports. cyber security policies and guidelines observed during biannual cyber security audits mandated under Para 4.82 or reports from other agencies. For the above, a “Financial Disincentive” of Rs.500,000/- {five lakhs} shall be levied for each such deficiency from the date of the report. as per the reporting structure specified at Para 4.72.12. A “Financial Disincentive” of INR 10,000,00/- {ten lakhs} shall be levied on those MIIs that i. Do not report a cyber security breach/incident, or ii. Delay the reporting of the cyber security breach/incident deadline set by SEBI/ HPSC-CS. The progressive slab-wise structure for imposition of “Financial Disincentives” shall be followed from the expiry of the deadline specified by SEBI/ HPSC-CS.

Question: In the Master Circular for Depositories, what does section 4.72.13.1 state about Cyber Security breaches, cyber-attacks and any other cyber security incidents?
Answer: occurring on account of non-compliance of SEBI cyber security policies and guidelines and delay in reporting the Root Cause Analysis to SEBI in case of breaches, attacks and incidents.
Regulator: SEBI

4.28.6 SEBI regulated Depositories and Clearing Corporations are FMIs. These --- systemically important FMIs provide essential facilities and perform systemically critical functions in the market and shall be required to comply with the PFMIs specified by CPSS-IOSCO as applicable to them. Secondary Market Advisory Committee of SEBI (SMAC). Based on the recommendations of SMAC, it has been decided that FMIs shall carry out self- assessment on a periodic basis against the PFMIs and disclose the same on their websites. For this purpose, the 24 principles for FMIs have been classified as “quantitative” and “qualitative” and their applicability for respective FMIs is as follows: * For these PFMI principles, Depositories have to make Qualitative Disclosures only. 5. The periodicity of self-assessment and disclosure by the FMIs shall be as follows: 6. FMIs shall be monitored and assessed against the PFMIs on annual basis by the Regulatory Oversight Committee (ROC) of the FMI and the ROC shall submit a report to the governing board of the FMI and SEBI within 60 days from the end of the financial year.

Question: What does paragraph 4.28.6 of the Master Circular for Depositories cover regarding SEBI regulated Depositories and Clearing Corporations are FMIs.?
Answer: systemically important FMIs provide essential facilities and perform systemically critical functions in the market and shall be required to comply with the PFMIs specified by CPSS-IOSCO as applicable to them.
Regulator: SEBI

4.8.1 Depositories and Depository Participants (DPs) are required to preserve the --- records and documents for a minimum period of 8 years. in physical form or an electronic record, copies of which have been taken by CBI, Police or any other enforcement agency during the course of their investigation till the trial is completed.

Question: What does paragraph 4.8.1 of the Master Circular for Depositories cover regarding Depositories and Depository Participants (DPs) are required to preserve?
Answer: records and documents for a minimum period of 8 years. in physical form or an electronic record, copies of which have been taken by CBI, Police or any other enforcement agency during the course of their investigation till the trial is completed.
Regulator: SEBI

4.40.3 Core IT (Information Technology) support infrastructure / activities for --- running the core activities of depositories shall not be outsourced to the extent possible. Due Diligence 177 Reference: SEBI Circular CIR/MRD/DP/19/2015 dated December 09, 2015 party to whom activity is proposed to be outsourced and ensure that only reputed entities having proven high delivery standards are selected. Risk Management & Monitoring downstream only with the prior consent of the depository and with appropriate safeguards including proper legal documentation/ agreement. outsourcing any activity and appropriate risk mitigation measures like back up/ restoration system are in place. to ensure that there is check on the activities of outsourced entity. Depositories shall strive to automate their processes and workflows to the extent possible which shall enable real time monitoring of outsourced activities. Audit outsourced activities. Audit of implementation of risk assessment and mitigation measures listed in the outsourcing policy document and outsourcing agreement/ service level agreements pertaining to IT systems shall be part of System Audit of Depositories.

Question: What is provided under paragraph 4.40.3 of the Master Circular for Depositories concerning Core IT (Information Technology) support infrastructure / activities?
Answer: running the core activities of depositories shall not be outsourced to the extent possible.
Regulator: SEBI

4.30.1 MIIs (i.e. Stock Exchanges, Clearing Corporations and Depositories) are --- systemically important institutions as they, inter-alia, provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market. Therefore, it is imperative to devise a comprehensive testing framework to manage the IT systems/applications of MIIs throughout their lifecycle, which can assist the MIIs in performing thorough risk assessment before deploying any IT systems in production/ live environment. the following requirements while establishing the testing framework of their IT systems/applications:-

Question: In the Master Circular for Depositories, what does section 4.30.1 state about MIIs (i.e. Stock Exchanges, Clearing Corporations and Depositories)?
Answer: systemically important institutions as they, inter-alia, provide infrastructure necessary for the smooth and uninterrupted functioning of the securities market.
Regulator: SEBI

4.66.3.2.3.1 PIDs shall be subjected to internal evaluation as well as external --- evaluation, carrying equal weightage. evaluate the performance of each PID, on an annual basis at the end of every financial year. evaluation during their last year of the term in a depository , by a management or a human resources consulting firm. The consultant shall take into consideration the performance of the PID for the entire tenure served in a given depository, at least up to 4 months before expiry of his/ her term. In order to avoid any bias or conflict of interest, external consultant should not be a related party or associated with the depository, the concerned PID or any other governing board members. manner and the review should be recorded with clarity and verifiable facts in a standardized format covering all the relevant criteria / aspects. of the depository shall also take into consideration provisions of Clause 2(d) of Schedule II Part C of DP Regulations under the head ‘Public Interest Director’; and conflict of interest, if any, of any PIDs should be disclosed to SEBI by the governing board with their comments/ views.

Question: What is provided under paragraph 4.66.3.2.3.1 of the Master Circular for Depositories concerning PIDs shall be subjected to internal evaluation as well as external?
Answer: evaluation, carrying equal weightage. evaluate the performance of each PID, on an annual basis at the end of every financial year. evaluation during their last year of the term in a depository , by a management or a human resources consulting firm.
Regulator: SEBI

12. Optional mechanism for fee collection by SEBI registered Investment --- chargeable should be appropriately identified as such in public domain. 18. Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries under the Prevention of Money Laundering Act, 2002 and Rules framed there under Research Analysts are advised to refer to the master circular on ‘Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries under the Prevention of Money Laundering Act, 2002 and Rules framed there under’. The Master Circular issued on June 06, 2024 available at the following link: https://www.sebi.gov.in/legal/master-circulars/jun-2024/guidelines-on-anti- money-laundering-aml-standards-and-combating-the-financing-of-terrorism-cft- obligations-of-securities-market-intermediaries-under-the-prevention-of-money- laundering-act-2002-a-_83942.html 19. Know Your Client (KYC) Requirements RAs are advised to refer to the following circular (s)/ master circular (s) for KYC norms: i. Master Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2023/169 dated October 12, 2023 on ‘Know Your Client (KYC) norms for securities market’ available on SEBI website at: https://www.sebi.gov.in/legal/master- circulars/oct-2023/master-circular-on-know-your-client-kyc-norms-for-the- securities-market_77945.html ii. Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2024/79 dated June 06, 2024 on ‘Uploading of KYC information by KYC Registration Agencies (KRAs) to Central KYC records Registry (CKYCRR)’ available at: https://www.sebi.gov.in/legal/circulars/jun-2024/uploading-of-kyc-information- by-kyc-registration-agencies-kras-to-central-kyc-records-registry-ckycrr- _84006.html iii. Circular No. SEBI/HO/MIRSD/SECFATF/P/CIR/2025/74 dated May 23, 2025 on ‘Accessibility and Inclusiveness of Digital KYC to Persons with Disablities’ available at: https://www.sebi.gov.in/legal/circulars/may-2025/accessibility- and-inclusiveness-of-digital-kyc-to-persons-with-disabilities_94096.html

Question: What is provided under paragraph 12 of the Master Circular for Research Analysts concerning Optional mechanism for fee collection by SEBI registered Investment?
Answer: chargeable should be appropriately identified as such in public domain.