The Securities and Exchange Commission of Pakistan (SECP) introduced amendments to the Research Analyst Regulations, 2015.
This guide explains what these changes mean, how they define professional advice, and how you benefit from a more transparent market.
1. What is a "Research Report" in Pakistan?
Not every piece of financial news is a regulated report. Under the 2026 rules, a Research Report is any written communication (electronic or print) that provides a basis for an investment decision regarding listed securities.
Research Services include:
Direct Recommendations: Buy/Sell/Hold calls.
Price Targets: Expected target price and stop-loss floors.
Influence: Opinions meant to guide investor choices.
Portfolio Models: Curated lists of listed securities.
Technical Signals: Technical analysis based trading alerts.
Commission Mandates: Any further services added by the SECP.
What is NOT a Research Report in Pakistan?
General market trends, economic commentaries, statistical summaries, or internal company notes are not classified as formal research reports.
2. Who is a "Research Analyst" in Pakistan?
The SECP has broadened the definition to include anyone influencing your investment decisions. This now includes:
Individuals: Natural persons registered with the SECP.
Body Corporates: Registered firms, including brokerage houses.
Social Media Analysts: Anyone providing research services via WhatsApp, Telegram, or social media "public appearances".
White-Label Providers: Those who prepare research for other firms to publish under their own name.
3. Key Regulatory Changes by the SECP
Mandatory Registration: No one can act as an analyst without formal SECP registration.
Professional Certification: Analysts must hold elite qualifications such as CFA, FRM, or Actuarial fellowships.
Blackout Periods: Analysts and their close relatives (spouses/children) cannot trade the stock they are recommending within 7 days before or 5 days after publication.
Fiduciary Duty: Analysts are now legally required to act in your best interest (a "fiduciary capacity").
4. How You Benefit as an Investor
The 2026 regulations were written specifically to protect your capital.
Verified Expertise: You can trust that the author has the required 16 years of education and relevant financial experience.
Transparency in Analysis: Reports must now clearly distinguish between facts, opinions, and assumptions.
Disclosure of AI: Analysts must disclose if and how they used Artificial Intelligence to generate their research.
Conflict Disclosure: Every report must list if the analyst has a financial interest in the stock or if they have received compensation from the company in the last 12 months.
Standardized Language: To avoid confusion, analysts must use specific terms:
Buy/Outperform: Expectation to do better than the market.
Hold/Neutral: Expectation to perform in line with peers.
Sell/Underperform: Negative investment expectation.
5. Staying Safe: The Investor Checklist
Before you follow a "hot tip," check the report for these mandatory items:
Check for SECP Credentials: Whether you are joining a WhatsApp group, a Discord community, or hiring a portfolio advisor, ensure you ask for their SECP registration number first.
Rationale: The report must include the data and analysis used to arrive at the recommendation.
Link to SECP regulation: https://www.secp.gov.pk/document/s-r-o-7i-2026-notification-amendments-to-research-analyst-regulations-2015/?wpdmdl=63392&refresh=695f63175131b1767858967
Last Updated on January 8th, 2026.