Glossary
Plain-language meanings of the words on a research call, in SEBI’s rules for Research Analysts, and in sign-up. 36 terms.
Reading a research call
The words on a research call and its page: levels, risk, status and time.
- Cancelled
- Withdrawn before entry: never filled, never traded and not counted in results. “Stop-loss hit” is different: that call was entered and exited at the stop.
- Candle
- One bar on the chart, covering one period of the call’s timeframe. On a daily chart one candle is one trading day; on a 15-minute chart it is 15 minutes.
- Entry zone
- The price range in which the call may be entered. If the price has already moved past the zone, the call does not ask you to chase it.
- Fill
- The price at which the call was actually entered, as recorded by the analyst. The call’s results are measured from it. Your own fill may be different.
- Invalidation
- The condition that would show the view is wrong. If it happens before entry, the call is void and should not be entered.
- Lot size
- Futures, options and MCX contracts trade in lots: a fixed number of units per contract, set by the exchange and changed from time to time. Check the current lot size with your broker.
- Now / Last price
- The latest price recorded for the call, from a TradingView alert or the analyst. It is not a live exchange quote. “Last” means it was not updated today.
- R
- R is the risk taken on the call: the distance from entry to stop-loss. +1R gained as much as was risked; −1R is a full stop-loss; 0.47R is a little under half the risk.
- R:R
- Reward to risk: the distance to a target compared with the distance to the stop-loss. 1:2 means the target is twice as far as the stop. It describes the plan, not the chance of reaching it.
- Stop % away
- “Stop 2.8% away” means the stop-loss is 2.8% from the entry price. It is not 2.8% of your capital: what you could lose in rupees depends on your quantity.
- Stop basis
- The price the stop distance is measured from: the fill once the call is entered, or the middle of the entry zone before that.
- Stop-loss
- The price at which the call is exited to limit the loss if the trade goes wrong. For a buy it is below the entry; for a sell, above it.
- Targets (T1, T2, T3)
- The price levels where the call plans to book profit, nearest first. Reaching T1 does not mean T2 will follow.
- Timeframe
- The chart the setup is read on: 15m, 1H, 1D or 1W. It is the unit for counting candles and a rough guide to how long the call may run.
- Trailing stop
- A stop-loss moved in the trade’s favour after it has progressed, for example to the entry price after T1. On a call it moves only when the analyst posts an instruction.
- Valid until
- The entry window. If the entry has not triggered by the time shown, the call lapses and should not be entered unless the analyst updates it.
Regulation and checks
The bodies, numbers and systems you meet when you check a Research Analyst or raise a complaint.
- Investment AdviserIA
- A person or firm registered with SEBI under a separate set of regulations to give personalised investment advice. A Research Analyst publishes research for its clients but does not advise on your own portfolio unless it also holds this registration.
- PaRRVAPast Risk and Return Verification Agency
- An agency recognised by SEBI to verify the past performance data of Research Analysts and Investment Advisers. SEBI's advertisement rules allow past performance to be advertised only when it has been verified this way.
- RAASBResearch Analyst Administration and Supervisory Body
- The body that administers and supervises Research Analysts on behalf of SEBI. BSE Limited has been recognised as the RAASB, and registered Research Analysts are enlisted with it.
- Research AnalystRA
- A person or firm registered with SEBI under the SEBI (Research Analysts) Regulations, 2014 to publish research reports and recommendations on securities. Registration is a licence to publish research; it is not a statement about the quality of that research.
- SCORESSEBI Complaints Redress System
- SEBI's online system for complaints against registered intermediaries, at scores.sebi.gov.in. A complaint lodged there is sent to the intermediary, and its reply is tracked.
- SEBI registration number
- The number SEBI gives a registered intermediary. A Research Analyst's number starts with INH followed by nine digits; an Investment Adviser's starts with INA. You can look either up on SEBI's website.
- SMART ODR
- The securities market's online dispute resolution portal, at smartodr.in. If a complaint is not settled with the intermediary or through SCORES, it can be taken there for conciliation and, if needed, arbitration.
- Standard warning
- The risk warning SEBI requires, word for word, on a registered intermediary's website and advertisements. Its wording may not be changed or shortened.
- Unregistered tips
- Buy or sell recommendations on securities given by someone who is not registered with SEBI to give them. Recommending securities for a fee without registration is not permitted, whatever the channel.
Signing up
The words you meet during KYC, agreement and payment with a Research Analyst.
- Accredited investor
- An investor who has been formally accredited under SEBI rules because of their income or net worth. Most retail investors are not accredited.
- Breakage fee
- A charge some services add when you end a plan early. It is also called an exit fee.
- CeFCoMCentralised Fee Collection Mechanism
- An optional way to pay research analysts' fees, managed by BSE Limited. SEBI encourages clients to use it.
- DigiLocker
- The Government of India's digital document wallet. You can use it to share your identity documents for KYC without uploading scans.
- eSign
- A way to sign a document online with a one-time code (OTP) sent to your Aadhaar-linked mobile. No paper or printing is needed.
- HUFHindu Undivided Family
- A family that is treated as a separate unit for tax, with its own PAN. Choose Individual if you are subscribing for yourself.
- KRAKYC Registration Agency
- An agency registered with SEBI that keeps KYC records. If you already did KYC with a broker or mutual fund, your record may already be there.
- KYCKnow Your Customer
- A one-time identity check that SEBI requires before a research analyst can take you on as a client. It uses your PAN, date of birth and address.
- MITCMost Important Terms and Conditions
- A short summary of the key terms of your research subscription. SEBI requires every research analyst to give it to clients.
- PEPpolitically exposed person
- Someone who holds or has held a prominent public role, such as a senior politician or senior government official, or their close family or associates. Most people answer No.
- Pro-rata
- In proportion. A pro-rata refund pays back the part of your fee that covers the days you have not used.
Regulatory Disclosure
Investology (SEBI RA INH000029528) publishes research recommendations under the SEBI (Research Analysts) Regulations, 2014. It does not manage portfolios, provide personalised investment advice, execute trades, or guarantee returns. KYC is mandatory before accessing any research service.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
