The Securities and Exchange Board of India (SEBI) has eased compliance requirements for Research Analysts (RAs) and Investment Advisors (IAs), allowing them to inform existing clients about the Most Important Terms and Conditions (MITC) through email or any mode of communication that can be preserved.

In circulars issued on February 17, SEBI provided a standard format for MITC for both RAs and IAs. Existing clients must be informed of these terms by June 30, 2025.

For new clients, RAs and IAs must integrate the MITC into their service agreements, disclose the full terms, and obtain consent through physical or e-signatures.

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This aligns with Moneycontrol’s February 5 report, which had indicated that SEBI was reconsidering certain guidelines following concerns from RAs regarding ease of doing business. Sources had suggested that the regulator might allow RAs to bypass physical or digital signatures for MITC confirmation, opting instead for email communication.

The MITC specifies the maximum annual fees RAs and IAs can charge per family and the permitted advance fee collection period—three months for RAs and six months for IAs.

However, SEBI has floated a consultation paper to extend this period to a year, following pushback from industry participants.