Skip to content

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

Which of the following best describes the rule on a research analyst's trading in a security that is the subject of the analyst's research report?

A research analyst must not trade in a security covered in a report during the 30 days before and 5 days after the report's publication. This prevents front-running and conflicts of interest. Holding the security is not banned, but must be disclosed.

  1. AThe analyst may trade at any time because the report is public
  2. BThe analyst must not trade in that security during the period of 30 days before and 5 days after the publication of the reportCorrect
  3. CThe analyst may trade only on the day of publication
  4. DThe analyst is banned from ever holding the security

Explanation

The regulations restrict research analysts from trading in securities they cover for 30 days before and 5 days after the report is published. Trading at any time or only on the day of publication is not permitted, and holding is not banned outright; disclosure is needed.

Did you get it right without looking?

One question tells you little. A timed set on Legal and Regulatory Environment (NISM XV) shows your real accuracy, how long you take and where you lose marks.

Practise Legal and Regulatory Environment (NISM XV)Free diagnostic mock

More Legal and Regulatory Environment (NISM XV) questions