(1) Research analyst or research entity shall maintain the following records:
(i) research report duly signed and dated;
(ii) research recommendation provided;
(iii) rationale for arriving at research recommendation;
(iv) record of public appearance.
(2) All records shall be maintained either in physical or electronic form and preserved for a minimum period of five years:
Provided that where records are required to be duly signed and aremaintained in electronic form, such records shall be digitally signed.
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(3) Research analyst or research entity shall conduct annual audit in respect of compliance with these regulations from a member of Institute of Chartered Accountants of India or Institute of Company Secretaries of India.
Appointment of compliance officer.
26. Research analyst or research entity which isa body corporate or limited liability partnership firm shall appoint a compliance officer who shall be responsible for monitoring the compliance of the provisions of the Act, these regulations and circulars issued by the Board.
CHAPTER IV INSPECTION Board’s right to inspect.
27. The Board may suomotu or upon receipt of information or complaintappoint one or more persons as inspecting authority to undertake inspection of the books of accounts, records and documents relating to research analyst or research entityfor any of the following reasons, namely: -
(i) to ensure that the books of account, records and documents are being maintained in the manner specified in these regulations;
(ii) to inspect into complaints received from any person, on any matter having a bearing on the activities of a research analyst;
(iii) to ascertain whether the provisions of the Act and these regulations are being complied with by the research analyst or research entity;
(iv) to inspect into the affairs of research analyst or research entity in relation to research activities, in the interest of the securities market or in the interest of investors.
Notice before inspection.