SECP issues updated list of 58 notified research entities

The Securities and Exchange Commission of Pakistan (SECP) has issued updated list of 58 notified research entities under the Research Analysts Regulations, 2015. The list of notified research entities as updated on September 27, 2018 has been made available on the SECP website.
According to sources, SRO 748(I)/2017 had amended Research Analyst Regulations, 2015 under which the Commission has directed research analysts to refrain from predicting outcome of matters pending before the court of law or speculating on the basis of possible outcomes of such matters.
Under the regulations, research analyst shall ensure that facts in the research reports are based on reliable information and the source of such information is disclosed. Further, the research analyst shall refrain from predicting the outcome of matters pending before the court of law or speculating on the basis of possible outcomes of such matters. The research analyst shall define the terms used in making recommendations and these terms should be used consistently.
The SECP said the Research Report includes a written communication, in any form, which includes a price target - the fundamental value or a listed security or a public offer derived by the research analyst; or a "buy/ sell/ hold" recommendation or an analysis or opinion concerning a listed security or a public offer; or an analysis of equity securities of a particular sector or industry; or a commentary predicting a specific level or change for an index.
The SECP said the "White-Labelling service provider" means such person who prepares research reports and sells them to a research entity for publication under the research entity's name.
In case a research entity obtains content of a research report from a white-labelling service provider and publishes it under the research entity's name, such white-labelling service provider shall be treated as a research analyst for the purposes of these regulations and shall be responsible for compliance with these regulations and shall make all necessary disclosures or any material conflict of interest in such research report. Such research entity shall also provide disclosures required under these regulations in the research report.
Provided that if such research entity makes any alterations in the research report prior to its publication, the research entity shall be responsible for ensuring compliance with these regulations in respect of such alteration; and independent research analyst, research entity and white-labelling service provider shall inform the commission before commencement of its business for the purposes of record, the SECP added.
Following is the list of the notified research entities under the Research Analysts Regulations, 2015 here on Monday: The list of notified research entities updated on September 27, 2018: Aba Ali Habib Securities (Private) Limited, Abbasi Securities (Private) Limited, Adam Securities (Private) Limited, AKD Securities Limited, Akseer Research (Pvt) Ltd, Alfa Adhi Securities (Pvt) Ltd, Al-Falah Securities (Private) Limited, Al Habib Capital Markets (Private) Limited, Al-Hoqani Securities and Investment Corporation (Private) Limited, AMCAP Securities (Private) Limited, Arif Habib Limited, Askari Securities Limited, Azee Securities (Private) Limited, BMA Capital Management Limited, Cedar Capital (Pvt) Ltd, Din Capital Limited, Elixir Securities Pakistan (Private) Limited, Fawad Yusuf Securities Private Limited, First Capital Equities Limited, Fortune Securities Limited, Foundation Securities (Private) Limited, Global Securities Pakistan Limited, Habib Metropolitan Financial Services Limited, IGI Finex Securities Limited, Integrated Equities (Private) Limited, Intermarket Securities Limited, Insight Securities (Private) Ltd, EFG Hermes Pakistan Limited, Invest Capital Markets Limited, Ismail Iqbal Securities Private Limited, JS Global Capital Limited, BIPL Securities Limited, Market 786 (Private) Limited, Msmaniar Financials (Private) Limited, Multiline Securities (Private) Limited, Nael Capital (Private) Limited, Next Capital Limited, Optimus Capital Management (Private) Limited, Pearl Securities Limited, Rafi Securities (Private) Limited, Shajar Capital (Private) Limited, Sherman Securities (Private) Limited, Spectrum Securities (Private) Limited, Standard Capital Securities (Private) Limited, Strongman Securities (Private) Limited, Summit Capital (Private) Limited, Sunrise Capital Limited, Taurus Securities Limited, Topline Securities (Private) Limited, Vector Securities (Private) Limited, Zafar Securities (Private) Limited, Darson Securities (Pvt) Limited, Mohammad Munir Mohammad Ahmed Khanani Securities (Pvt) Limited, Khadim Ali Shah Bukhari Securities (Pvt) Limited, CS Solutions (Pvt) Limited, Trust Securities & Brokerage Limited, and First National Equities Limited. Individual Research Analysts: Syed Abbas Haider Zaidi, the SECP list added.