n NISM Certifications
XV NISM Series XV
Medium

Which is permitted under the research analyst code of conduct? Research analysts must remain independent of sales and trading functions, but receiving feedback from sales personnel on research reports is allowed to understand market impact. Any activity beyond this, such as performance evaluation by sales teams, is prohibited.

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Analyst performance decided by sales/trading team

  2. B

    Common supervisor for sales/trading and research teams

  3. Sales team giving feedback on research reports

    Correct answer

  4. D

    All of the above

Why this is the answer

SEBI regulations allow research analysts to receive feedback from sales personnel to gauge the practical impact of research reports. However, analysts must remain independent, and their performance must not be influenced by trading or sales teams.

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