The regulatory framework is one of the most scoring sections of the NISM Series XV exam — the rules are specific, and once you memorise the key thresholds, the marks are easy. This guide summarises the SEBI (Research Analysts) Regulations, 2014 and the Code of Conduct in plain language.
Why these regulations exist
Research influences how investors allocate money. To protect investors and ensure independent, conflict-free research, SEBI introduced the Research Analysts Regulations in 2014. They govern who can be a research analyst, how they must behave, and what they must disclose.
Who must register
A person or entity must obtain SEBI registration as a Research Analyst if they:
- Prepare or publish research reports.
- Provide buy/sell/hold recommendations or price targets.
- Use the title "research analyst" in their work.
A valid NISM Series XV certificate is a pre-condition for registration and for employees engaged in research.
Key obligations under the Code of Conduct
Independence and integrity
Analysts must act with honesty, fairness and independence, and avoid any act that is misleading or manipulative.
Management of conflicts of interest
Firms must separate research from activities (like investment banking) that could bias it. Compensation of analysts must not be linked directly to specific recommendations.
The trading restriction (remember this!)
An analyst (and associates) must not trade in securities they recommend within 30 days before and 5 days after publishing the research report. This prevents front-running. This 30-day threshold is a classic exam question.
Disclosures
Research reports must disclose, among other things:
- Any financial interest or holding in the subject company.
- Any material conflict of interest.
- Whether the analyst or firm received compensation from the company.
- The analyst's certification that views are unbiased.
Other points often tested
- Record keeping: research reports and related records must be maintained for a prescribed period.
- Qualifications & certification: analysts must meet the prescribed qualification and hold a valid NISM XV certification.
- Committees: governance norms (e.g., that the chairman of certain committees be an independent director) frequently appear.
How to study the regulations for the exam
The regulatory chapter is memory-based, so use these tactics:
- List the thresholds — 30 days / 5 days for trading, certificate validity (3 years), etc. — on one revision sheet.
- Drill questions on disclosures and the Code of Conduct.
- Revise the day before — these facts fade quickly, so spaced repetition works best.
ScoreSetu has a full set of SEBI / regulations practice questions with explanations, plus last-day revision tests that focus on exactly these high-yield thresholds.
Treat the SEBI (Research Analysts) Regulations, 2014 as free marks. Memorise the thresholds, practise the questions, and this becomes one of your strongest sections in the NISM Research Analyst exam.