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

Under the SEBI (Research Analysts) Regulations, 2014, which of the following must a research analyst do regarding records of its research activities?

A research analyst must maintain records of its research reports, recommendations, rationale and communications for the period specified by the regulations, so that SEBI can inspect them. The duty is not dependent on complaints or on whether the client pays.

  1. AMaintain records of research reports, recommendations and related communications for the period specified in the regulationsCorrect
  2. BDestroy client records as soon as the recommendation is issued
  3. CMaintain records only if a complaint has been received
  4. DKeep records only of paid clients and not of free reports

Explanation

Analysts must maintain records such as research reports, recommendations, rationale and client communications for the prescribed period so that they can be inspected by SEBI. Record keeping is not conditional on a complaint, and the duty does not depend on whether the client pays.

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