NISM Series XV : Research Analyst Certification Exam Notes
Page 61 Of 62
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The regulations define unpublished price sensitive information (UPSI) that affect the company or its securities as those that is not generally available and which can materially affect the price of the securities.
UPSI - Periodical financial results of the company, Intended declaration of dividends, both interim and final, Issue of securities, or buyback of securities and other change in capital structure, Mergers, acquisition, demergers, delisting, disposal of business, Any change in key personnel, Material events as defined under the listing agreement
Chinese Wall - To prevent the misuse of confidential information the organisation / firm shall adopt a 'Chinese Wall' policy which separates those areas of the organisation/firm which routinely have access to confidential information, considered 'insider areas' from those areas which deal with sale/ marketing/investment advice or other departments providing support services considered public areas and processes which would permit any designated persons to cross the wall'.
These regulations also state that "Analysts, if any, employed with the organization /firm while preparing research reports of client company(s) shall disclose their shareholdings/interest in such company(s) to the Compliance Officer and the Analysts who prepare research report of listed company shall not trade in securities of that company for thirty days from preparation of such report."
Chapter III of SEBI (Research Analyst) Regulations - Regulation 18: Limitations on publication of research report, public appearance and conduct of business, etc. - (1) Research analyst or research entity shall not publish or distribute research report or research analysis or make public appearance regarding a subject company for which he has acted as a manager or co-manager at any time falling within a period of: (a) 40 days immediately following the day on which the securities are priced if the offering is an initial public offering; or (b) 10 days immediately following the day on which the securities are priced if the offering is a further public offering
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