Fresh Harvard graduates can’t be analysts in India

If you have just finished studying at a top global university, the Indian financial markets may not be the place for you. 

Those who have studied from top-tier financial market education institutions including the London School of Economics, Yale, Oxford or Cambridge would all fail to meet the criteria for research analysts in India. The new regulations say they must have a post-graduate degree from an institution recognised by Indian bodies such as the University Grants Commission. 

This would mean that no foreign-educated analyst is qualified to practice the profession in India until he has acquired at least five years experience. However, a fresher from any Indian university who meets the minimum criteria can start off on day one. 

The regulations say that an analyst must have ‘a professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets’.

This must come from a university which is recognised by University Grants Commission or similar body. It can include an institute associated with such a university, one which the central or state government has set up, or an autonomous institute under the Government of India’s administrative control. The qualification can also be one which is accredited by the All Indian Council for Technical Education, National Assessment and Accreditation Council or National Board of Accreditation’ or other similar bodies. 

An analyst who does not have a post-graduate degree or professional qualification must have five years of financial market experience. 

Yogesh Chande, Associate Partner, Economic Laws Practice said that this position can only be modified, if the regulator makes an amendment to the regulations. Interestingly, he added that the draft regulations did allow for foreign qualifications. 

“The consultation paper issued by Sebi for public comments on 29 November 2013, did contain in the proposed draft regulations a provision which permitted individuals having professional qualification/post-graduate degree/post graduate diploma provided by a university/ institution /association which is recognized/ accredited by a foreign government or recognized/ accredited by any corporate/ institute which has been created/recognized by such foreign government for the purpose, as a qualification to act as a research analyst. However, the same does not find place in the notified regulations,” said Chande.