Press Release
VIS Reaffirms Broker Fiduciary Rating of Muhammad Munir Muhammad Ahmed Khanani Securities Limited
Karachi, July 01, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Muhammad Munir Muhammad Ahmed Khanani Securities Limited at ‘BFR2’. Rating of BFR2 denotes strong fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on May 16, 2024.
The rating signifies sound internal controls, financial sustainability, client services and ownership and governance framework.
Mohammad Munir Muhammad Ahmed Khanani Securities Limited (“MMMAKSL” or “the Company”) is a public unlisted company, providing equity and commodity brokerage services and research to institutional as well as retail clients. Major shareholding of the Company is vested with Mr. Muhammad Munir Khanani, who serves as the Chief Executive Officer (CEO) of the Company. The Company provides both online and assisted trading services to its clients, and have branches in Karachi, Lahore, Islamabad, Sahiwal, Peshawar, Manshera, Swat, and Rawalpindi.. The Company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), registered with SECP to provide Trading & Self Clearing Services. External auditors of the Company are Rehman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
Rating takes into account the Company’s governance framework, with a board comprising five members, including two independent directors, and four board committees. The Company’s client services are supported by the provision of various channels, including online and mobile trading applications, along with prompt trade alerts to facilitate clients. However, Investor grievance procedures may be more pronounced on the Company’s website for better client facilitation. Contingency measures are in place, with disaster recovery exercises conducted frequently and offsite backups are maintained at third party warehouse. Rating also takes note of the non-compliances highlighted by PSX and the penalty imposed thereon, and the subsequent reduction thereof following an appeal against the order. Going forward, ensuring compliance with all applicable regulations will be important from the rating’s perspective.
Assessment of the financial profile reflects a notable surge in the Company’s profitability in line with the overall positive industry trend, driven by a significant increase in operating revenue alongside higher realized gains. Consequently, the Company’s operational efficiency depicted improvement. Market risk of the Company is considered elevated. Liquidity profile of the Company is considered adequate. Capitalization profile of the Company is supported by a sizeable equity base, with manageable gearing and leverage ratios. Going forward, sustainability of the earning profile along with improvement in market risk, liquidity profile as well as gearing and leverage ratio 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%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf