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

Which of the following is an obligation of a research analyst regarding record keeping under the SEBI (Research Analysts) Regulations, 2014?

A research analyst must keep records of research reports, recommendations and their rationale for at least five years. The rule applies to all recommendations, not only Buy ratings, and records cannot be discarded when a client relationship ends, because they support regulatory inspection.

  1. AMaintain records of research reports and recommendations for the period specified by the regulations, which is at least five yearsCorrect
  2. BDiscard records after the client relationship ends
  3. CMaintain records for one year only
  4. DRecords need only be kept for reports with a 'Buy' rating

Explanation

Research analysts must maintain documents such as research reports, recommendations, rationale and communications with clients for at least five years. Discarding records early or keeping only Buy-rated ones would not meet the requirement, and one year is too short.

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