Islamabad, Jan 28: The Securities and Exchange Commission of Pakistan (SECP) has issued a Consultation Paper seeking public input on proposed enhancements to the Research Analyst Regulations, 2015. The initiative aims to improve the quality of research available to investors in Pakistan’s capital markets, aligning the framework with evolving local and global standards.
Research analysts play a pivotal role in guiding investment decisions by offering critical insights into publicly traded companies and identifying investment opportunities in the capital markets. High-quality research creates a positive cycle by enabling accurate valuations, which in turn enhances the attractiveness of the market for investors.
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The proposed updates to the regulations include several significant changes designed to strengthen the industry. These include introducing mandatory registration for research analysts, extending the blackout period during which analysts cannot issue recommendations, and appointing the Pakistan Stock Exchange (PSX) as the frontline regulator of research analysts. Additionally, the SECP has suggested establishing a code of communication for research analysts to ensure ethical and professional standards in their work.
A key proposal in the paper is the creation of a Research Platform, which would focus on promoting research for under-covered companies, ensuring greater transparency and accessibility for investors. This move is aligned with international best practices and is expected to drive more equitable market participation by shedding light on lesser-known investment opportunities.
By incorporating public feedback, the SECP aims to refine these proposed measures to foster a more robust regulatory environment for research analysts, ultimately contributing to a more efficient and transparent capital market ecosystem in Pakistan.
