1.What registration changes
- Who is accountable
- A named firm or person on SEBI's register, supervised by SEBI and BSE (RAASB)
- Often anonymous, with no regulator supervising it
- Before you pay
- KYC, and written terms of service including the MITC
- Usually nothing in writing
- Conflicts of interest
- Disclosed, for example whether the analyst holds the security
- Not disclosed: the sender may be selling what they recommend
- Fees
- Capped for individuals at ₹1,51,000 per annum per family; at most one year in advance; proportionate refund if you leave early
- No limits, and often pressure to upgrade
- Advertising
- No testimonials, no promises about returns, and past performance only if verified by PaRRVA
- Profit screenshots and claims about results are common
- Complaints
- To the RA, then SEBI SCORES, then SMART ODR
- No formal route
| Topic | Registered Research Analyst | Unregistered channel |
|---|---|---|
| Who is accountable | A named firm or person on SEBI's register, supervised by SEBI and BSE (RAASB) | Often anonymous, with no regulator supervising it |
| Before you pay | KYC, and written terms of service including the MITC | Usually nothing in writing |
| Conflicts of interest | Disclosed, for example whether the analyst holds the security | Not disclosed: the sender may be selling what they recommend |
| Fees | Capped for individuals at ₹1,51,000 per annum per family; at most one year in advance; proportionate refund if you leave early | No limits, and often pressure to upgrade |
| Advertising | No testimonials, no promises about returns, and past performance only if verified by PaRRVA | Profit screenshots and claims about results are common |
| Complaints | To the RA, then SEBI SCORES, then SMART ODR | No formal route |
Registration does not make research right. Any call can lose money, registered or not. What registration gives you is a known, supervised counterparty, written terms, disclosed conflicts and a way to complain.
2.Red flags
- Promised or "fixed" returns. No one knows the outcome of a trade in advance. A message that names the profit you will make, or says a call cannot fail, is a warning sign.
- Claims about how often their calls work. Percentages of calls that reached target, or counts of winning trades, are performance claims. A registered RA may not advertise past performance unless PaRRVA has verified it, and may not advertise accuracy figures at all.
- Screenshots of profit. A screenshot shows one trade, chosen by the sender. It tells you nothing about the trades that are not shown.
- Paid "VIP" or "premium" groups. A paid group that sends buy or sell calls is research for a fee, which needs SEBI registration. Paying for access does not make the group registered.
- Calls given away to build trust, followed by an offer to join a paid group. This is a common funnel for unregistered channels.
- Pressure to pay now: a "last few seats" message, a running timer, or a price that rises if you wait.
- Requests for your trading login or one-time passwords, or offers to run your account for a share of the profit. A Research Analyst does not execute trades or manage portfolios.
- Payment to a personal account, or to a name that does not match the registered entity.
- Calls that are deleted or edited afterwards, so that only the ones that worked remain.
- No registration number, or one that does not match SEBI's register.
3.Why it matters to you
With an unregistered channel there is usually no one accountable when things go wrong: no written terms, no disclosed conflicts, no complaint route and no refund rules. SEBI has passed orders against unregistered persons who ran paid tip channels, including directions to give up the money they collected.
Acting on a call is always your decision and your risk. Registration does not change that; it changes who answers for the research, and how.
4.Education, influencers and registration
Teaching how markets work, such as how to read a chart or what a stop-loss is, is education and does not need registration. Recommending particular securities, or making claims about returns or performance, does. SEBI allows unregistered educators to use market price data only from at least three months earlier, so that teaching does not become a live recommendation.
SEBI also bars registered entities from paying, referring clients to or otherwise associating with unregistered people who give advice or recommendations, or who make claims about returns or performance.
5.A short checklist
- Is a registered name and an INH number shown, and do they match SEBI's register?
- Will you get KYC and written terms, including the MITC, before you pay?
- Is the fee paid to the registered entity, in its registered name?
- Are there claims about profits, wins or certainty? If so, step back.
- Is there a way to complain beyond the channel itself?
