What Is MITC (Most Important Terms and Conditions)?
MITC stands for Most Important Terms and Conditions. It is a SEBI-standardised, plain-language summary of the key terms between a Research Analyst and a client, the points a client absolutely must understand before they pay you. It sits on top of your full client agreement and pulls the headline terms into one short document people actually read. Here is what it covers, when you share it, and how to keep proof.
Note: General information, not legal advice. Use the current MITC text and format published by SEBI or RAASB, and confirm it against the latest SEBI circular before you rely on a template.
The short definition
The Most Important Terms and Conditions is a standardised summary of the analyst-client relationship. SEBI introduced it so the headline points are not lost in a twenty-page agreement. The wording and format are standardised through the RA industry standards issued via RAASB, so you are not meant to write your own version. You fill in your own details and share the same standard document with every client. For the longer treatment, see the full MITC explainer.
What the MITC covers
The MITC carries the points that protect both sides. At a minimum:
- You are a SEBI-registered Research Analyst, not an Investment Adviser, and you do not manage funds or give personalised advice.
- Your registration number and the name of the entity providing the service.
- No assured or guaranteed returns. Investments are subject to market risk.
- The fee you charge, the mode of payment, and that the fee for individual and HUF clients stays within the SEBI cap.
- That research is a recommendation, not an instruction, and the client decides whether to act.
- Conflict-of-interest position and any financial interest in the securities covered.
- The grievance route: your contact, SCORES, and the ODR portal.
- That you do not seek client trading credentials or take custody of client funds or securities.
The clauses and their exact wording are standardised. Use the current RAASB-issued text rather than paraphrasing it into your own language. The only parts you change are your own details: your name, your SEBI registration number, your fees, your contact. For the clause-by-clause breakdown and a sample structure, see the MITC template and format guide.
When you have to share it
Share the MITC at onboarding, before the client starts paying, and again whenever your terms change. Both new and existing clients are in scope. The MITC's fee line should reflect the SEBI fee cap for individual and HUF clients, so keep that line honest with the current limit. Tie the MITC to your onboarding flow so it never gets skipped, and the same document goes out to every client the same way.
How to keep proof (Regulation 25)
The MITC only protects you if you can show the client received it. Send it through a channel that records delivery, such as email or WhatsApp, get the client to acknowledge it, and keep that record for five years with your other Regulation 25 records. When a client later claims they were never told you do not guarantee returns, a timestamped, tamper-evident record of the MITC ends the argument. Aktai keeps that kind of delivery record automatically for everything you send a client.
FAQ
What does MITC stand for?
MITC stands for Most Important Terms and Conditions. It is a SEBI-standardised, plain-language summary of the key terms of the Research Analyst and client relationship: that you are a Research Analyst and not an Investment Adviser, that you do not guarantee returns, your fee position, the grievance route, and the disclaimers. It sits on top of the full client agreement so the headline points are read rather than buried.
When does a Research Analyst have to share the MITC?
At onboarding, before or at the point the client starts paying for your research, and again whenever the terms change. Both new and existing clients are in scope. Keep a record that the client received it, since the MITC only protects you if you can show it was shared.
Is the MITC the same as the client agreement?
No. The MITC is a short, standardised summary of the most important points. The client agreement is the full contract. You need both. The MITC makes sure the headline terms are read; the agreement covers everything in detail. The MITC sits on top of the agreement, it does not replace it.
How long do I keep proof that I shared the MITC?
Five years, alongside your other records under SEBI Regulation 25. The proof is a timestamped record that the client received and acknowledged the MITC, stored somewhere retrievable and tamper-evident. If a client later disputes what they were told, that retained record is what settles it.