What are the rules for recommending a model portfolio?
In force
If you recommend a model portfolio, SEBI requires disclosure of the methodology behind stock selection, benchmarking against an appropriate index, and periodic audit of the portfolio's performance claims.
This sits within the broader research-report obligation: your recommendations must be corroborated by relevant data and analysis that forms the documented basis for the call — a chart with a timestamp, by itself, is not treated as sufficient rationale.
What SEBI says, word for word
FAQ Circular, Q36“Research analyst or research entity are required to maintain the rationale for arriving at research recommendations. They are required to have adequate documentary basis, supported by research, for preparing a research report and shall ensure that recommendations in the research report are corroborated by relevant data and analysis forming the basis for such research service.”Source: SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/105, dated July 23, 2025 Open document ↗
Summary of Master Circular“Guidelines for recommending model portfolios, including disclosures, methodology, benchmarking, and audit requirements.”Source: Master Circular for RAs (consolidated provisions) Open document ↗