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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 best describes a research analyst's obligation relating to the use of the registration status in communications?

A research analyst may state that SEBI registration does not guarantee performance or assure returns, and must never imply SEBI endorsement or promise assured returns. The registration number should be disclosed in reports, so claims of guaranteed returns or omitting the number are not permitted.

  1. AThe analyst may claim SEBI endorses his recommendations
  2. BThe analyst may state that registration with SEBI does not guarantee performance or assure returnsCorrect
  3. CThe analyst may guarantee minimum returns if registered
  4. DThe analyst need not mention registration number in reports

Explanation

Registration does not imply SEBI's endorsement or guarantee of performance, and analysts must not promise assured returns. They are required to display the registration number in reports, so that option is wrong.

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