SEBI Compliance update 2026
SEBI Compliance is no longer limited to obtaining a Research Analyst (RA) or Investment Adviser (IA) registration.
Recent regulatory developments have increased focus on investor protection, complaint handling, disclosures, data security, governance controls, advertisement practices, audit trails, and compliance monitoring.
Many advisory firms discover compliance gaps only when a complaint reaches SCORES, an inspection begins, an audit is conducted, or a regulatory query arrives.
Investor Protection First
Today’s regulatory framework places significant responsibility on Research Analysts, Investment Advisers, FinTech platforms, and subscription-based advisory businesses.
SEBI expects firms to maintain proper disclosures, grievance mechanisms, internal controls, compliance records, conflict management frameworks, and investor communication systems.
A strong research team alone is not enough. Strong compliance systems are equally important.
Where Firms Struggle
Most compliance failures are not intentional.
They occur because responsibilities become fragmented between management, operations teams, technology teams, external consultants, and compliance functions.
Common issues include delayed grievance responses, weak documentation, employee misconduct, data leakage, improper advertisements, incomplete disclosures, and poor record management.
Small compliance gaps often become expensive regulatory problems later.
Our Dual Compliance Model
One of the biggest misconceptions in the industry is that compliance can be handled entirely by one individual.
In reality, successful SEBI-regulated businesses require two separate compliance pillars working together.
Operational Compliance Engine
Managed by Team Prakasha & Co.
- SEBI Compliance Audits
- MCA & ROC Compliance
- Board Governance Support
- Chinese Wall Policies
- Conflict Disclosure Frameworks
- SCORES 2.0 Support
- SMART ODR Assistance
- Compliance Registers & Logs
- Legal & Secretarial Advisory
These corporate, legal, governance, and audit functions are handled by our experienced CA, CS, and Legal Team.
Principal Officer Framework
The designated Principal Officer or Internal Compliance Officer must be appointed by the client company as required under applicable SEBI regulations.
The appointed individual should satisfy the prescribed qualification requirements, including NISM certification wherever applicable.
This role may be performed by a director, employee, executive, or another qualified professional engaged by the company.
Our role is not to replace your Compliance Officer.
Our role is to strengthen your compliance ecosystem, support your internal team, and provide the legal, secretarial, governance, audit, and regulatory infrastructure required for long-term growth.
Why Firms Approach Us
- ✓ SEBI Audit Preparation
- ✓ SCORES Complaint Handling
- ✓ SMART ODR Matters
- ✓ Employee Data Theft Risks
- ✓ Advertisement Compliance Review
- ✓ Investor Protection Frameworks
- ✓ RAASB Compliance Requirements
- ✓ MCA & ROC Compliance Alignment
- ✓ Regulatory Documentation & Disclosures
Built For Growth
Whether you operate as a Research Analyst, Investment Adviser, FinTech platform, stock advisory company, or subscription-based research business, compliance requirements become more demanding as your subscriber base grows.
Our integrated Legal, CS, and CA Team helps bridge the gap between capital market regulations and corporate governance requirements under one roof.
New Compliance Challenges 2026
The compliance expectations for Research Analysts (RA) and Investment Advisers (IA) have increased significantly over the last few years.
Growing subscriber bases, digital platforms, AI-powered research tools, social media marketing, and investor protection requirements have created new regulatory responsibilities.
Many firms are finding it difficult to keep pace with both business growth and compliance obligations.
Net Worth Monitoring
Corporate Research Analysts are expected to continuously maintain prescribed net worth requirements and supporting documentation.
RAASB Compliance
Subscriber-based advisory businesses may need to comply with additional operational, reporting, and security deposit requirements under applicable frameworks.
Five-Year Records
Research reports, recommendations, client communications, disclosures, and supporting records must be properly maintained and retrievable.
Advertisement Review
Marketing materials, videos, social media posts, and promotional content must align with SEBI’s advertisement and investor protection requirements.
AI & Automation Disclosures
Where technology, scanners, automated systems, or AI tools influence recommendations, businesses should evaluate disclosure and governance obligations.
SCORES & ODR
Investor complaints require timely handling, proper documentation, and structured responses through applicable grievance mechanisms.
The Cost Of Delay
Most regulatory issues do not appear overnight.
They usually begin as a missed disclosure, unresolved complaint, incomplete record, weak internal process, or unreviewed advertisement.
Over time, these small issues can evolve into inspections, investor disputes, compliance observations, or regulatory actions.
The most cost-effective compliance strategy is always prevention, not correction.
Quick Risk Check
Can your firm confidently answer the following?
- ✓ Are all investor complaints tracked and documented?
- ✓ Are personal trading controls in place?
- ✓ Are disclosures updated on the website?
- ✓ Are advertisement reviews documented?
- ✓ Are research records maintained properly?
- ✓ Are MCA and SEBI records aligned?
- ✓ Is your compliance audit preparation ready?
If the answer is uncertain, a compliance review may help identify gaps before they become regulatory concerns.
What We Deliver
Most advisory firms do not need another consultant.
They need a reliable compliance engine that continuously supports management, the Principal Officer, and internal teams.
Our services are designed to strengthen compliance, reduce regulatory risk, and improve investor confidence.
Our Deliverables Matrix
Our compliance framework is divided into three practical pillars.
Pillar 1 – Structural Setup
A strong compliance foundation helps prevent future regulatory issues.
- ✓ Legal Strong Policies
- ✓ Conflict of Interest Framework
- ✓ Website Compliance Review
- ✓ Investor Charter Setup
- ✓ Mandatory Disclosure Frameworks
- ✓ Research Report Templates
- ✓ Internal Compliance Registers
- ✓ Governance Documentation
Objective: Build a regulatory-ready operational structure.
Pillar 2 – Ongoing Vetting
Compliance is a continuous process, not a one-time exercise.
- ✓ Personal Trading Pre-Clearance Registers
- ✓ 30-Day Prior Trade Monitoring
- ✓ 5-Day Post Trade Monitoring
- ✓ Advertisement & Social Media Review
- ✓ SCORES 2.0 Monitoring Support
- ✓ SMART ODR Assistance
- ✓ Investor Complaint Tracking
- ✓ Internal Compliance Reviews
Objective: Identify and address compliance gaps before regulators do.
Pillar 3 – Statutory Compliance
This pillar focuses on audit readiness, governance, and regulatory filings.
- ✓ Regulation 25(3) Compliance Audit Support
- ✓ Half-Yearly Net Worth Review
- ✓ MCA Compliance Management
- ✓ ROC Filings
- ✓ Board Meeting Documentation
- ✓ Annual Corporate Compliance Review
- ✓ Regulatory Documentation Support
- ✓ Governance Monitoring
Objective: Keep the organization compliant and inspection-ready.
Co-Sourced Compliance Model
Many businesses ask whether compliance can be completely outsourced.
The practical answer is that the most effective model is a co-sourced approach.
Your designated Principal Officer or Internal Compliance Officer remains responsible for internal regulatory functions as required under applicable SEBI regulations.
Our team works alongside management and the Compliance Officer to build systems, maintain records, support audits, monitor compliance activities, and strengthen governance controls.
Why This Matters
Regulators generally review not only whether a compliance issue occurred, but also whether adequate systems existed to prevent it.
Well-maintained policies, audit trails, approvals, disclosures, registers, and governance records often become critical during inspections, complaints, and regulatory reviews.
Strong documentation is often your first line of regulatory defence.
Benefits For Advisory Firms
- ✓ Reduced Compliance Risk
- ✓ Better Investor Confidence
- ✓ Improved Governance Standards
- ✓ Stronger Audit Readiness
- ✓ Better Complaint Management
- ✓ Faster Regulatory Response
- ✓ Better Documentation Control
- ✓ More Time To Focus On Business Growth
Compliance Is Only One Side Of The Story
Many regulatory challenges actually begin with operational weaknesses inside the organization.
Employee misconduct, client disputes, data leakage, diverted collections, and weak internal controls can create both SEBI and corporate governance risks.
The next section explains the operational risks many advisory firms overlook until a serious problem occurs.
Operational Risks Nobody Talks About
Many regulatory issues do not begin with SEBI inspections.
They begin inside the organization through weak controls, poor documentation, employee misconduct, or unmanaged investor complaints.
In our experience, operational failures often create greater long-term risks than technical compliance gaps.
Employee Data Theft
Client databases, research reports, subscription records, and proprietary methodologies are valuable business assets.
When employees leave without proper controls, businesses may face data leakage, client poaching, and confidentiality breaches.
Prevention is always easier than recovery.
Subscription Fee Diversion
We have seen situations where client payments are collected outside approved business channels.
Even a single unauthorized collection can create legal, accounting, governance, and regulatory complications.
Strong internal controls help reduce this risk.
Research Model Leakage
Years of research development can be compromised if proprietary models, strategies, reports, or client intelligence are copied without protection.
Appropriate agreements, access controls, and internal policies become critical.
Advertisement Violations
Social media posts, YouTube videos, Telegram groups, WhatsApp promotions, and marketing campaigns are increasingly scrutinized.
Unverified claims, misleading performance references, or inappropriate promotional language can create avoidable regulatory exposure.
Investor Complaints
A small unresolved complaint can escalate through regulatory channels if not handled properly.
Timely responses, supporting records, and proper documentation are essential for effective resolution.
Documentation Gaps
Many firms assume they are compliant until an audit, complaint, investor review, or inspection requires supporting records.
Missing registers, disclosures, approvals, or audit trails often become major issues later.
Building A Legal Shield
The objective of compliance is not simply avoiding penalties.
The objective is building a defensible business structure capable of handling regulatory reviews, investor scrutiny, employee disputes, and operational challenges.
Our legal, secretarial, and compliance teams help businesses create practical protection mechanisms before problems arise.
How We Help
- ✓ Employment & Confidentiality Agreements
- ✓ Non-Disclosure Protection Frameworks
- ✓ Internal Control Documentation
- ✓ Investor Complaint Support
- ✓ SCORES 2.0 Assistance
- ✓ SMART ODR Support
- ✓ Corporate Governance Reviews
- ✓ Compliance Risk Assessments
- ✓ Legal Recovery & Advisory Support
Real Experience Matters
Every compliance framework looks good on paper.
The real test comes when businesses face rapid growth, investor expectations, employee challenges, operational risks, or regulatory scrutiny.
The following examples demonstrate how practical compliance management helps businesses strengthen governance and reduce risk.
Recent Compliance Success Stories
Compliance is not just about regulations. It is about protecting businesses, strengthening governance, and creating investor confidence.
Below are examples of how our team has recently assisted businesses in managing compliance challenges and operational risks.
FIN Tech Advisory Firm – Rajajinagar, Bengaluru
A growing RA advisory business approached us while expanding its Daily trader subscriber base and strengthening its operational structure.
The management required assistance with compliance documentation, governance controls, internal policies, and regulatory readiness.
Our team implemented compliance frameworks, reviewed disclosure mechanisms, strengthened governance records, and established a structured compliance monitoring system.
Outcome: Improved compliance visibility, stronger operational controls, and better preparedness for future regulatory reviews and business expansion.
Financial Services Business – RT Nagar, Bengaluru
A financial services company required support in strengthening employee controls, confidentiality mechanisms, documentation practices.
The business wanted to proactively reduce risks relating to sensitive client information, internal operational controls, and regulatory obligations.
Our legal team reviewed the existing framework and implemented structured agreements, documentation controls, and compliance monitoring procedures.
Outcome: Enhanced governance standards, improved documentation controls, and stronger protection of business-sensitive information.
Why Businesses Engage Us
Many firms contact us before a compliance issue becomes a problem.
Others approach us after receiving regulatory queries, investor requests, governance concerns, or internal operational challenges.
In both situations, our objective remains the same — create a practical compliance framework that protects the business while supporting future growth.
Why Choose Prakasha & Co.?
Most compliance firms focus on a single area.
SEBI compliance often overlaps with MCA filings, ROC compliance, board governance, legal documentation, employment matters, investor protection requirements, and regulatory reporting.
Our strength lies in bringing all these disciplines together under one roof.
One Team. Multiple Experts.
Your business receives support from experienced professionals across compliance, legal, secretarial, and governance functions.
- ✓ SEBI Compliance Advisory
- ✓ MCA & ROC Compliance
- ✓ Corporate Governance Support
- ✓ Legal Documentation
- ✓ Compliance Audits
- ✓ Investor Protection Frameworks
- ✓ SCORES & SMART ODR Support
- ✓ Board & Secretarial Compliance
Experienced Leadership
Our compliance assignments are supported by experienced professionals working together as an integrated team.
- Mahesh S – SEBI Compliance & Regulatory Advisory
- Prakasha CR – Corporate Governance & Compliance Advisory
- Damodharaa R – Chartered Accountant & Strategic Advisory
- Sreedhara S – Taxation & Compliance Support
- Advocate C Satish – Legal & Regulatory Advisory
Together, our team brings decades of practical experience in managing compliance, governance, legal documentation, and regulatory matters.
Built Around Your Compliance Officer
We do not replace your Principal Officer or Internal Compliance Officer.
Instead, we work alongside your management team and designated compliance personnel.
This co-sourced model helps businesses remain compliant while avoiding the cost and complexity of building a large internal compliance department.
Flexible Engagement Model
Every advisory business has different regulatory requirements.
Compliance support depends on subscriber volume, operational complexity, internal controls, governance requirements, and regulatory scope.
For smaller advisory businesses, engagement plans generally start from ₹20,000 per month.
Fees vary depending on the level of compliance support, audit involvement, legal requirements, and business scale.
Who Benefits Most?
- Research Analysts (RA)
- Investment Advisers (IA)
- Stock Advisory Companies
- FinTech Platforms
- Market Research Firms
- Portfolio Advisory Businesses
- Subscription-Based Advisory Platforms
- Growing Financial Services Companies
Compliance With Confidence
Regulatory compliance should support business growth, not slow it down.
Our objective is to help businesses build sustainable compliance systems, strengthen governance, improve investor confidence, and remain prepared for regulatory reviews.
When compliance is managed properly, management can focus on growth with confidence.
Frequently Asked Questions
Can SEBI compliance be outsourced?
Many operational, legal, governance, audit, MCA, ROC, and compliance support functions can be outsourced to experienced professionals. However, certain internal responsibilities must remain with designated personnel as required under applicable SEBI regulations.
Can Prakasha & Co. act as our Principal Officer?
No. The Principal Officer or Internal Compliance Officer must be appointed by the company and satisfy the applicable qualification requirements prescribed under SEBI regulations.
Do you replace our Compliance Officer?
No. Our model is designed to strengthen your existing compliance structure. We work alongside your Compliance Officer, management team, and directors to build a stronger compliance framework.
Who needs NISM certification?
The individual designated as Principal Officer or Internal Compliance Officer should possess the applicable NISM certification wherever required under SEBI regulations.
Can an existing employee become Principal Officer?
Yes. Subject to applicable eligibility requirements, an existing director, employee, executive, or qualified professional may be appointed by the company.
What is your dual compliance model?
Our model combines an Internal Principal Officer appointed by the company with an external compliance support framework managed by Team Prakasha & Co. This provides both regulatory ownership and professional compliance support.
What does Prakasha & Co. handle?
Our team supports SEBI compliance audits, MCA filings, ROC filings, governance reviews, compliance registers, Chinese Wall policies, disclosure frameworks, SCORES support, SMART ODR assistance, legal documentation, and compliance monitoring.
Do you handle both SEBI and MCA compliance?
Yes. One of our key strengths is integrating SEBI compliance with MCA, ROC, legal, governance, and corporate secretarial requirements under one roof.
Do you support SCORES and SMART ODR matters?
Yes. We assist businesses in responding to investor complaints, maintaining documentation, strengthening internal processes, and supporting grievance resolution frameworks.
What is included in a SEBI compliance engagement?
The scope depends on the business. Services may include compliance audits, governance reviews, regulatory documentation, disclosure management, ROC compliance, board support, policy drafting, and ongoing compliance monitoring.
What happens during a SEBI compliance audit?
The audit generally reviews compliance systems, disclosures, governance records, investor protection mechanisms, internal controls, documentation, and regulatory obligations applicable to the business.
How much does SEBI compliance support cost?
Compliance support generally starts from ₹20k per month for smaller advisory businesses. Fees vary depending on subscriber volume, compliance scope, governance requirements, and the level of involvement required.
Can you help a newly registered Research Analyst firm?
Yes. We assist newly registered entities in establishing governance structures, compliance frameworks, registers, policies, disclosures, and operational controls from the beginning.
Why should an advisory business invest in compliance?
Strong compliance systems improve investor confidence, strengthen governance, reduce regulatory risk, support business growth, and help businesses remain prepared for audits, inspections, and investor reviews.
Meet The Compliance Team
Our compliance assignments are supported by experienced professionals with 2 decades of combined experience in corporate governance, legal advisory, secretarial practice, taxation, and regulatory compliance.
- Mahesh S – SEBI Compliance & Regulatory Advisory
- Prakasha CR – Corporate Governance & Compliance Advisory
- Damodharaa R – C A & Strategic Advisory
- Sreedhara S – Taxation & Compliance Support
- Channa Satish – Legal & Regulatory Advisory
Together, the team assists businesses in managing SEBI, MCA, ROC, governance, legal, and investor protection requirements under one coordinated framework.
Need SEBI Compliance Support?
Whether you are a Research Analyst, Investment Adviser, FinTech platform, stock advisory company, or financial services business, our team can help strengthen your compliance framework and governance systems.
From compliance audits and regulatory reviews to MCA, ROC, legal, and governance support, we help businesses remain compliant and growth-ready.
Last Updated: June 2026
20+ Years Experience | SEBI + MCA + ROC Compliance | Advocates + CS + CA Team | Bengaluru Based Advisory Firm
