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

Which of the following practices by a registered research analyst would breach the code of conduct under the SEBI (Research Analysts) Regulations, 2014?

Dealing in a security during the restricted window around publication of a report on it breaches the code of conduct. The rules bar trading that conflicts with the report, to prevent front-running and misuse of research. Keeping records and disclosing conflicts are compliant behaviours.

  1. AMaintaining records of research reports for the prescribed period
  2. BDealing in a security within the restricted period around the publication of a report on it, contrary to the regulationsCorrect
  3. CDisclosing a conflict of interest to clients
  4. DSeeking client consent before using the report for another purpose

Explanation

The regulations prohibit research analysts and their associates from trading in securities in a way that conflicts with their reports, including trading in the period just before and after publication (the 30 days before and 5 days after for a report). Record keeping, disclosing conflicts and seeking consent are compliant actions, not breaches.

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