Press Release
VIS Reaffirms Broker Fiduciary Rating of Foundation Securities (Private) Limited
Karachi, October 09, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Foundation Securities (Private) Limited (“Company” or FSL) at ‘BFR3++’. Rating of BFR3++ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on September 22, 2025.
The rating signifies adequate business and financial stability, underpinned by a sound ownership and governance framework. Management and client servicing are considered strong, as also the internal controls and regulatory compliance of the company are sound.
Foundation Securities Private Limited, a subsidiary of Askari Bank Limited, offers equity brokerage services, with a limited presence in commodity segment and caters to domestic retail and institutions clientele, high net worth individuals, and foreign broker dealers. The Company conducts its operations through its head office in Karachi, along with branches in Lahore, Islamabad, and Rawalpindi. The Company hold a Trading Right Entitlement (TRE) certificate issued by the Pakistan Stock Exchange Limited (PSX), a Trading & Self- Clearing license and a license of Pakistan Commodity Exchange (PMEX). External auditors of the Company are on the approved list of auditors in category ‘A’, published by the State Bank of Pakistan (SBP).
The assigned rating incorporates the Company’s ownership profile and governance structure, with the strong profile of its sponsors continuing to provide support to the rating. The Board of Directors comprises five members, with no independent representation. Induction of suitably qualified and certified independent directors may strengthen the Board’s oversight and independence. Further enhancement of the Board committee structure may also support a more robust governance framework. The rating also reflects the Company’s effective management and client servicing, supported by customer facilitation tools, online trading platforms, and contingency arrangements with offsite backups. Greater visibility of investor grievance procedures and broader promotional initiatives may further enhance customer outreach and market presence. The Company has established internal policies; however, further enhancement in their scope and coverage may reinforce the effectiveness of its internal control environment. Moving forward, adherence to all applicable regulations will remain important for the rating.
The Company’s financial profile reflects growth in operating revenue, supported primarily by higher brokerage revenue, in line with the industry-wide increase in trading volumes. Cost-to-income ratio of the Company is considered moderate. Market risk is considered low in the absence of proprietary trading. Liquidity and capitalization profile of the Company is satisfactory. Going forward, revenue diversification, alongside strengthening of efficiency, liquidity and capitalization profile, will be important for the rating
For further information on this rating, 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-2025/BrokerFiduciaryRating-Nov25.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf