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NISM Certifications · NISM-Series-XV: Research Analyst · Legal and Regulatory Environment (NISM XV)

A SEBI-registered research analyst receives a complaint from a client about the research service. Which statement about the analyst's obligation regarding records is most appropriate under the regulations?

A registered research analyst must keep records of research reports, recommendations, supporting rationale and client communications for the prescribed period and produce them to SEBI during inspection. Discarding records after delivery or depending on client fees is not allowed, since records enable regulatory supervision and complaint resolution.

  1. ARecords need not be maintained once the report is delivered
  2. BThe analyst must maintain records of research reports, recommendations, client communications and rationale for the prescribed period, and make them available to SEBI on inspectionCorrect
  3. CRecords must be handed to the client permanently and none retained
  4. DRecords are kept only if the client pays a fee

Explanation

Registered research analysts must maintain records, including reports, the data supporting recommendations and client communications, for the period prescribed (five years). These must be produced during SEBI inspection. Discarding records or handing them over entirely would prevent supervision.

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