Pakistan SEC Tightens Rules: Mandatory Registration for Research Analysts

The Securities and Exchange Commission of Pakistan (SECP) has announced amendments to the Research Analyst Regulations, 2015, reinforcing its commitment to stronger governance and market integrity. The updated framework aims to improve transparency, empower investors to make informed decisions, and build greater confidence in the capital market.

The revised regulations mark a major step forward from the earlier framework, which only provided general guidance and lacked a formal registration mechanism. Under the new rules, all research analysts are now required to register with the SECP.

In addition, recognizing the growing influence of social media, where individuals often perform roles similar to research analysts, the SECP has introduced specific compliance measures to ensure strict adherence to regulatory obligations.

Key changes include:

• Expanded scope of research reports
• Longer blackout periods
• Enhanced disclosure requirements for target prices and dates
• Clearer rules for white-labelling service providers
• A code of conduct for research analysts

The amendments were finalized after extensive consultations with key stakeholders, including research analysts, brokerage firms, asset managers, and industry associations. The SECP issued a consultation paper, held multiple sessions, and invited public comments before incorporating reforms based on market feedback to improve clarity and effectiveness.