NISM Series XXV-A flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Person associated with research

An individual involved in preparing, publishing, or distributing research reports, or providing research-related services under the research analyst's control, including sales and client-facing staff.

Non-core services scope

Activities such as sales, marketing, distribution, and client servicing that support research dissemination but are not core research functions, and must not compromise research independence.

Chinese wall segregation

A structural barrier separating research from investment banking, merchant banking, and sales functions to prevent conflicts and flow of confidential price-sensitive information between departments.

Research analyst certification

The NISM Series XV Research Analyst certification required for individuals performing core research analyst functions under SEBI (Research Analysts) Regulations, 2014.

Conflict of interest disclosure

Mandatory disclosure of holdings, financial interests, and relationships that could affect objectivity, included in research reports and communications with clients.

Simultaneous dissemination rule

Research recommendations must be published and made available to all clients at the same time, preventing selective release to favoured clients or internal desks.

Sales role in research

Sales staff may communicate published research to clients but must not alter content, omit disclosures, or share unpublished recommendations selectively.

Compensation independence

Pay and incentives for research analysts and associated persons must not be linked to specific investment banking or brokerage transactions covered in research.

Confidentiality of research

Non-public research content must remain confidential until publication; associated persons must not trade or tip others based on unpublished recommendations.

Personal trading restrictions

Research analysts and associated persons must not trade in securities they cover contrary to their published recommendations, and must disclose personal holdings.

Distribution of research reports

Associated sales personnel must ensure reports reach clients with ratings, disclaimers, and disclosures intact and without selective or premature release.

Control and supervision

Persons associated with research services act under the research analyst's supervision, and the analyst remains responsible for compliance with research regulations.

Material conflict definition

Any interest, relationship, or arrangement that could reasonably be expected to impair objectivity in research, requiring disclosure and management.

Rating system disclosure

Research reports must explain the rating system used, including definitions and the time horizon for recommendations, so clients understand the recommendation basis.

Public appearance rules

Research analysts and associated persons making public appearances must ensure statements are consistent with published research and disclose conflicts.

Record retention

Research reports, supporting records, and communications must be retained for the period specified by SEBI regulations for audit and supervisory review.

Prohibition on front running

Trading ahead of published research recommendations by analysts or associated persons, directly or through others, is prohibited as a conflict and market abuse.

Independence of research

Research conclusions must be objective and free from pressure by investment banking, sales, or issuer clients, with no influence from business relationships.

Marketing of research

Sales and marketing staff may promote research services but must not misrepresent recommendations or omit material disclosures in promotional material.

Client communication standards

Communications about research must be fair, accurate, and not misleading, and must include necessary disclaimers and conflict disclosures.

Grievance redressal

Research analysts and associated persons must maintain a complaint-handling mechanism and respond to investor grievances within prescribed timelines.

Code of conduct

Research analysts and associated persons must act honestly, maintain integrity, avoid conflicts, and comply with SEBI regulations and applicable laws.

Insider information handling

Associated persons must not use or share unpublished price-sensitive information obtained through their role, in line with insider trading regulations.

Third-party research

When distributing third-party research, associated persons must verify its authenticity and disclose the source and any conflicts.

Reporting lines

Research analysts should report to management independent of investment banking, and associated sales staff must not influence research conclusions.

Advertisement restrictions

Promotional material for research services must not contain misleading claims about performance or omit risk disclosures required by regulations.

Due diligence of research

Associated persons must ensure research content is based on reliable information and that sources and assumptions are adequately disclosed.

Client categorization

Research distribution must respect client suitability and categorisation, ensuring recommendations are appropriate to the client's profile.

Prohibition on gifts

Associated persons must not accept or offer gifts or inducements that could influence research objectivity or create undisclosed conflicts.

Periodic compliance review

Firms must periodically review research and associated activities for compliance with SEBI regulations and take corrective action for breaches.

Training requirements

Persons associated with research services must receive training on conflicts, confidentiality, and regulatory obligations relevant to their roles.

Disclosure in public media

Research analysts appearing in media must disclose their holdings and relationships in securities discussed, and statements must align with published research.