Options
- A
Bonus based on brokerage revenue from the stocks they cover
- B
Bonus based on performance of the stocks they recommended
- C
Bonus based on investment banking revenue for transactions recommended
-
Bonus based on the overall revenue of the brokerage division, irrespective of the sector/stocks covered
Correct answer
Why this is the answer
SEBI prohibits linking analyst bonuses to specific stock performance or investment banking deals to avoid conflicts of interest; only overall division revenue can be used.
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