If the analyst of a firms is having some Material non public information about a company. And if he place that company into a restricted trading list.
Then it’s a signal to the market that something is fishy that is why they are not coming up with research report.?
First of all, it is not necessary that the material nonpublic information that the analyst has is negative information. It can also be news about something positive about to happen.
Also, if you see most of the questions will ask if what the analyst did was correct which he did in this case.
The second part of your doubt is debatable and I think everyone will have their own opinion on the same. And this may not be a question that may be tested. Even if they do there will be a part in the item set which will signify or support the same.
Okk