SEBI makes call recording optional for institutional research clients

From 8 November 2026, research analysts and research entities regulated by the Securities and Exchange Board of India no longer have to keep call recordings of interactions with institutional investors. The regulator announced the change in a circular dated 23 October 2026. The circular changes how a research provider may document communications with institutional clients. It leaves the wider duty to retain interaction records in place.

The framework permits records in several forms. Examples include a document signed by the client, an email from a registered address and another record that can be legally verified. The regulator explains that the obligation to maintain records applies whether or not the client pays a fee. Records start with the first client interaction and are normally kept for five years. Where a dispute has been raised, the relevant records must be kept until it is resolved.

Facts to remember

• Circular issued: 23 October 2026; provisions effective: 8 November 2026.
• The relaxation concerns call recordings for clients that are institutional investors.
• Records of client interactions remain required for both paying and non-paying clients.
• The ordinary retention period is five years; records connected to a dispute must be retained until resolution.

Background

The circular updates provisions for research analysts under the regulator’s research analyst framework. Client interaction records document the nature of the service and communications with a client. The distinction between an obligation to keep evidence and a requirement to use a specific recording format explains the limited scope of the change.

Why it matters for exams

For CLAT Economy and UGC-NET Law, revise securities regulation, regulatory circulars and the distinction between a recordkeeping duty and its permitted forms.