ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to amend the Research Analyst Regulations, 2015 to revise registration requirement for research analysts.
The SECP Monday released a Consultation Paper to elicit public feedback on potential areas of improvement in the Research Analyst Regulations, 2015 (Research Analyst Regulations). The paper has been prepared to enhance the quality of research available to investors in the Pakistani capital market, aligning with recent local and international developments.
Research Analysts serve a crucial role in guiding investment decisions by providing valuable insights into publicly traded companies and highlighting capital market investment opportunities to investors. High quality research fosters a virtuous cycle, contributing to more accurate valuations and consequently enhancing the overall attractiveness of the capital market as an investment avenue.
Some of the proposed improvements in the Research Analyst Regulations include registration requirement for research analysts, extending the blackout period, designating PSX as the front-line regulator of research analysts, and introducing a code of communication for research analysts. Further, the establishment of a Research Platform has been proposed to promote research for under covered companies in line with international best practices.
As per Research Analyst Regulations, 2015, there is no requirement for registration/ licensing for Research Analysts, Independent Research Analysts, Research Entities and White-Labelling Service Providers. The research analyst / entity must only inform the Commission before commencement of its business for the purposes of record. It is essential that the research analyst must maintain a list of clients, their UINs, nature of services, research fee, terms and conditions signed with client, details of listed securities covered, and similar data/information.
Copyright Business Recorder, 2025
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