Research Analysts to Require SECP Registration Under New Rules

The Securities and Exchange Commission of Pakistan (SECP) on Thursday notified amendments to the Research Analyst Regulations, 2015, for stronger governance standards and market integrity.

According to an SECP press release, the revised regulatory framework aims to help investors make informed investment decisions, improve transparency, and strengthen investor confidence in the capital market.

Under the revised regulations, research analysts will now be required to register with the SECP to set a more structured and enforceable oversight regime.

The changes also address developments driven by the growth of social media, where individuals increasingly perform functions similar to those of research analysts. To this end, the SECP has introduced specific compliance requirements to ensure that such activities fall within the regulatory ambit and adhere to prescribed obligations.

The amended regulations expand the scope of research reports, extend the blackout period, strengthen disclosure requirements relating to target prices and timelines, clarify the role of white-labelling service providers, and introduce a formal code of conduct for research analysts.

The amendments were finalized following extensive consultations with stakeholders, including research analysts, brokerage firms, asset managers, and industry associations. The regulator published a consultation paper, held multiple stakeholder sessions, and issued draft amendments for public feedback before finalizing the changes.