Disclosure Research Analyst should ensure in Research Reports

  • 1. Reliable information and defined terms
    The Research Analyst needs to ensure that the facts in the research reports are taken from a reliable source and information. Further, the terms used to provide research recommendation should be well defined in order to avoid any ambiguity. The terms defined shall be consistently used in the research report.
    The source from which the information is gathered for making the research report shall be well documented and maintained in records by the research entity or the research analyst.
  • 2.Rating System including time horizon and benchmarks
    Where the Research Analyst uses rating system, it should clearly define the meaning of each such rating along with the time horizon and benchmarks on which the rating is based.
  • 3. Price target for subject company’s securities
    Where in research report contains either a rating or price target for subject company’s securities for at least one year then such reports should also provide the graph of daily closing of such securities for the period assigned or for three year period, whichever is shorter.
  • 4. Third Party research reports
    Where any third party research reports are being distributed, the Research Analyst should
    a. review the third party research reports for any untrue statement of material fact or any false or misleading information.
    b. disclose any material conflicts of interest of such third party research provider or a web address shall be provided that directs a recipient to the relevant disclosures.
  • 5. Research reports to be signed and dated
    A research report should be duly signed and dated. It should be maintained either in physical or electronic form and shall be preserved for a period of 5 years. Where the reports are being maintained in electronic form, the report should be digitally signed.