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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 statement about maintaining records of research recommendations is correct?

A research analyst must maintain records of research reports, recommendations and their rationale for a minimum of five years. This allows SEBI to inspect compliance. Discarding records after delivery, keeping them for one year, or keeping them only on client request would breach the regulations.

  1. ARecords need not be kept once the report is delivered to the client
  2. BRecords must be maintained for a minimum period of five yearsCorrect
  3. CRecords need only be maintained for one year
  4. DRecords are to be kept only if the client requests it in writing

Explanation

The regulations require a research analyst to maintain records, including research reports, recommendations and rationale, for at least five years. Keeping them for a shorter period or only on request is non-compliant.

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