Press Release
VIS Upgrades Broker Fiduciary Rating of Taurus Securities Limited
Karachi, August 05, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the Broker Fiduciary Rating of Taurus Securities Limited (‘TSL’ or ‘the Company’) to ‘BFR3++’ from ‘BFR3+’. Rating of BFR3++ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on June 28, 2024.
The rating signifies strong ownership and governance and internal controls, sound management and client services and adequate business and financial sustainability.
TSL is a public unlisted company incorporated in 1993. The Company provides equity brokerage services along with financial/economic data research analysis. Major shareholding of the company is vested with National Bank of Pakistan (NBP), a state-owned entity and one of the largest commercial banks in Pakistan. The head office of the Company is located in Karachi, while a branch office is also present in Peshawar. The Company provides both online and assisted trading services to its clients. TSL holds Trading Rights Entitlement Certificate (TREC) for Trading & Self Clearing Services granted by Pakistan Stock Exchange Limited (PSX) and is also a license holder of Pakistan Mercantile Exchange Limited (PMEX). External auditors of the Company are M/s 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).
Rating reflects strong ownership and governance levels, underpinned by strong sponsor support and a seven-member board of directors, including three independent directors. 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. Additionally, the Company’s organizational structure is aligned with the scale of its operations. However, the Company may consider enhancing its customer services. Moreover, expanding the Company’s geographical footprint may also be considered to improve customer outreach. Internal controls of the Company are considered strong, supported by documented policies. Nevertheless, expanding the scope of these policies may be considered.
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 leverage metrics will remain important for 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 Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf