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NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession

Under the SEBI (Research Analysts) Regulations, 2014, which of the following is a research analyst required to do when making a public appearance in which a recommendation on a listed security is discussed?

A research analyst making a public appearance must disclose any financial interest, holding or conflict of interest in the subject company. This lets the audience judge possible bias. SEBI does not require prior approval for each appearance, and partial disclosure of only a target price is not enough.

  1. ADisclose any financial interest or holding in the subject company and any conflict of interestCorrect
  2. BObtain prior approval from SEBI for every media appearance
  3. CAvoid mentioning the subject company's name
  4. DDisclose only the target price and not the holdings

Explanation

Research analysts must disclose their financial interest, ownership and any material conflict of interest in the subject company while making public appearances. SEBI approval for each appearance is not required. Hiding the company name or limiting disclosure to the target price defeats the purpose of transparency.

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