The Securities and Exchange Commission of Pakistan (SECP) has formally notified amendments to the Research Analyst Regulations, 2015, marking a significant step toward strengthening governance standards and promoting integrity in the country’s capital market. The revised framework, announced on Thursday, aims to enhance transparency, improve investor decision-making, and bolster confidence among market participants.
Under the updated regulations, research analysts are now required to register with the SECP, establishing a structured oversight mechanism that ensures accountability and regulatory compliance. This move introduces formal recognition and monitoring of individuals and firms providing research services, aligning with international best practices in capital market governance.
The amendments also address the evolving role of social media in financial analysis. With increasing instances of individuals sharing research insights or recommendations online, the SECP has clarified that such activities must comply with prescribed regulatory obligations. Analysts operating in digital spaces will now fall within the regulatory ambit, ensuring that information disseminated via social platforms meets professional standards and does not mislead investors.
Key changes in the revised regulations include expanded coverage of research reports, an extended blackout period for analysts, and strengthened disclosure requirements related to target prices and forecast timelines. The amendments further clarify the responsibilities of white-labelling service providers and introduce a formal code of conduct for research analysts, emphasizing ethical standards, transparency, and investor protection.
The SECP finalized the amendments following an extensive consultation process with stakeholders. This included discussions with research analysts, brokerage firms, asset management companies, and industry associations. The regulator also issued a consultation paper, conducted multiple stakeholder sessions, and sought public feedback on draft proposals before implementing the changes.
Industry observers note that these reforms are timely, given the increasing reliance of investors on research outputs for decision-making in Pakistan’s growing capital market. By setting clear compliance requirements, the SECP seeks to reduce information asymmetry, prevent conflicts of interest, and maintain the integrity of investment research.
The amendments also aim to address concerns related to the rapid dissemination of financial advice through social media channels. With the proliferation of informal investment analysis, regulators have recognized the need to integrate these practices within the formal oversight framework, thereby mitigating risks of misinformation and protecting retail investors.
Through these regulatory updates, the SECP reinforces its commitment to modernizing Pakistan’s capital markets and ensuring a transparent, accountable, and investor-friendly environment. Analysts, brokerage firms, and other market participants are expected to comply with the new requirements promptly, with the regulator monitoring adherence to ensure long-term market stability and confidence.
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