NISM Series XXV-A cheat sheet

Persons Associated with Research Services (Sales and Other Non-Core Services)

• SEBI (Research Analysts) Regulations, 2014 apply to research analysts and to persons associated with research services, including sales and other non-core personnel who interact with clients on research content.

• A 'person associated with research services' is an individual engaged in preparation or publication of research reports or who provides research-related services under the control or supervision of the research analyst, including sales and marketing staff distributing research.

• Non-core services (sales, marketing, distribution, client servicing) may not dilute the independence of research: compensation and reporting lines for such persons must not be linked to specific investment banking or brokerage transactions covered in research.

• Research analysts must be physically segregated from investment banking, merchant banking, and other conflicted functions; associated sales personnel must not share confidential deal information with research staff.

• Employees in sales and other non-core roles who communicate research recommendations to clients must ensure the report is not altered and that disclaimers, ratings, and disclosures accompany the communication.

• The research analyst and persons associated with research services must disclose holdings, financial interests, and material conflicts of interest in the securities they cover, and must not trade contrary to their published recommendations.

• Mandatory qualifications: individual research analysts must hold NISM Series XV (Research Analyst) certification; associated persons in sales who only distribute research do not need the RA certification unless they perform core research functions.

• A research analyst must not engage in any other business activity that creates a conflict, and associated persons must maintain confidentiality of non-public research until it is published and simultaneously disseminated to all clients.