The Securities and Exchange Commission of Pakistan (SECP) has taken a serious notice of certain stock market research reports that have taken an extremely speculative approach to sensitive matters that remain sub judice. It is inappropriate for research analysts to speculate on how much KSE-100 index is likely to fall or rise, based on possible outcomes of court cases.
Such research reports fail to demonstrate the independence, objectivity, and due care expected from research analysts and they have the potential to adversely affect the sentiment of the capital market. The SECP has warned the relevant analysts and directed them to strictly comply with Research Analysts Regulations, 2015, and the Securities Act, 2015. Any further non-compliance shall be dealt with the full force of the law.
Moreover, the SECP chairman has directed the relevant SECP officers to comprehensively review the Research Analysts Regulations, 2015, considering the prevailing market practices and international laws.
