SECP seeks feedback on Research Analyst Regulations

January 27, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has released a Consultation Paper seeking 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, according to the press release issued today.

Research analysts play a vital role in shaping investment decisions by offering valuable insights into publicly traded companies and identifying promising investment opportunities in capital markets.

High-quality research creates a positive cycle, leading to more accurate valuations and boosting the overall appeal of capital markets as a preferred investment destination.

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.

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