A Sample Checklist for Investment Research Reports

A checklist is a structured, step‑by‑step tool that ensures every mandatory element of a research report is present, accurate, and presented uniformly. SEBI’s Research Analyst Regulations (2020) require analysts to disclose methodology, assumptions, and conflicts of interest; a checklist operationalises these mandates.

For the NISM exam, questions often present a partially completed report and ask you to spot the missing or non‑compliant items. Knowing the checklist items lets you answer quickly and avoid penalties for overlooking a single disclosure.

Beyond compliance, a checklist improves credibility with investors, reduces rework, and facilitates peer review. In Indian markets, where mutual funds and brokerage houses produce large volumes of reports, a standard checklist is a best‑practice requirement.

The core checklist is divided into four logical sections: (i) Report Identification, (ii) Investment Thesis, (iii) Analytical Support, and (iv) Disclosures. Each section contains specific items that the analyst must verify before finalising the report.

Report Identification includes the report title, date, analyst name, and unique reference number. These details enable traceability and version control, which SEBI monitors during inspections.

Investment Thesis requires a clear statement of the recommendation (Buy/Hold/Sell), target price, and investment horizon. The thesis must be justified with a concise summary of the expected catalyst.

Analytical Support covers quantitative models, valuation techniques, and sensitivity analysis. The analyst must attach assumptions, data sources, and a discussion of model limitations.

Disclosures capture conflict of interest, remuneration, and any material holdings of the analyst or the firm. Failure to disclose any of these leads to immediate regulatory breach.

SEBI mandates that every report disclose the analyst’s personal and firm‑level holdings in the securities discussed. The checklist item “Conflict of Interest Disclosure” ensures that the analyst records any direct or indirect positions, as well as any remuneration received from the issuer.

In addition, the report must state the methodology used for valuation—whether DCF, multiples, or comparable company analysis—and cite the data providers (e.g., Bloomberg, CMIE). This transparency allows investors to assess the robustness of the conclusions.

Exam‑writers frequently test your knowledge of these disclosures by providing a report excerpt and asking which disclosure is missing. Remember: if any of the four disclosure pillars (holdings, remuneration, methodology, data source) are absent, the answer is “non‑compliant.”

Quality checks focus on the logical flow, consistency of assumptions, and the use of appropriate benchmarks. The checklist item “Assumption Reasonableness” asks the analyst to justify key inputs such as growth rates, discount rates, and terminal value assumptions.

One quantitative metric often examined in the exam is the Compound Annual Growth Rate (CAGR) of historical earnings or revenue. Demonstrating the correct calculation of CAGR shows that the analyst can translate past performance into a forward‑looking estimate.

Another critical item is “Sensitivity Analysis.” The analyst must present best‑case, base‑case, and worst‑case scenarios, highlighting how changes in key drivers affect the valuation. This satisfies SEBI’s requirement for risk disclosure.

Presentation standards ensure that the report is readable and professional. The checklist item “Consistent Font & Heading Style” requires the analyst to use a predefined style guide—usually 11‑pt Times New Roman for body text and bold, 14‑pt for section headings.

Charts and tables must be clearly labelled, with source citations placed directly below the visual. The NISM exam often asks you to identify a formatting error, such as a missing source note, which leads to a deduction.

Finally, the report should include a “Summary of Recommendations” box that highlights the key take‑away for the investor. This box must be placed at the top of the report, as per SEBI’s best‑practice guidelines.

When drafting a report, the analyst should keep the checklist open in a separate window and tick each item as it is completed. This habit reduces the chance of omission during final review.

During peer review, the reviewer uses the same checklist to verify compliance. Any “No” response triggers a mandatory revision before the report can be published.

For exam preparation, practice by taking a mock report and marking each checklist item. This exercise builds speed for scenario‑based questions where you must identify the single non‑compliant element.