n NISM Certifications
XV NISM Series XV
Medium

A research analyst discovers that a family member owns shares of a company he is covering. What should he do?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Avoid issuing any recommendation

  2. B

    Issue a buy rating without disclosure

  3. C

    Publish research without assigning a rating

  4. Provide a rating with full disclosure of personal and family holdings

    Correct answer

Why this is the answer

SEBI regulations allow analysts to publish research provided all personal and family holdings are fully disclosed to avoid conflicts of interest.

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