Press Release
VIS Reaffirms Broker Management Rating of Taurus Securities Limited
Karachi, August 05, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Taurus Securities Limited (‘TSL’ or ‘the Company’) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on June 28, 2024.
The rating signifies strong compliance and risk management and external controls, sound internal control, HR and infrastructure and client relationship and adequate financial management and regulatory requirement.
TSL is a public unlisted company incorporated in 1993, providing equity brokerage services and financial/economic data research analysis. Major shareholding of the Company is vested with National Bank of Pakistan (NBP). The head office of the Company is located in Karachi, while a branch office is located in Peshawar. The Company provides both online and assisted trading services to its clients. TSL holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading & Self Clearing Services. The Company is also a license holder of Pakistan Mercantile Exchange Limited (PMEX). External auditors of the Company are BDO Ebrahim and Co. Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating takes note of the Company’s regulatory and supervision framework, with strong sponsor support and a seven-member board of directors, including three independent directors. The Company’s internal control framework is supported by documented policies. However, expanding the scope of these policies may be considered for further strengthening of the same. Improvement in the disclosure levels has been noted. Client servicing procedures remain sound, with online trading platforms and customer support infrastructure in place to facilitate trade transactions. However, the Company may consider enhancing its customer services. Furthermore, expanding the Company’s geographical footprint may help improve customer outreach. The Company’s HR and IT infrastructure is considered sound, with an organizational structure aligned to the scale of operations, along with contingency measures in place. The compliance and risk management framework is considered strong.
Assessment of the financial profile reflects an increase in the Company’s operating revenue, primarily driven by higher brokerage income in line with positive industry trends. The cost-to-income ratio remains on the higher side. The Company’s liquidity profile is considered adequate, while the absence of proprietary investments results in minimal market risk. Leverage has increased, though gearing remains at manageable levels. Going forward, enhancement in earning profile, along with improvement in liquidity profile and the leverage indicators will remain important for the rating.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf