Press Release
VIS Reaffirms Broker Fiduciary Rating to Growth Securities (Pvt) Limited
Karachi, October 14, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of Growth Securities (Pvt) Limited (‘GSPL’ or ‘the Company’) at BFR3+. Rating of ‘BFR3+’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on August 23, 2024.
The rating signifies sound business & financial sustainability, adequate ownership & governance, management & client services and internal controls & regulatory framework.
GSPL was incorporated in 2005, under the Companies Act 2017. The Company is engaged in ready-future arbitrage trading and provision of equity brokerage services to domestic clients. GSPL is registered with Securities & Exchange Commission of Pakistan and holds Trading Rights Entitlement Certificate (TREC) issued by Pakistan Stock Exchange Limited (PSX) for Trading and Self-Clearing Services. External auditors of the company are Baker Tilly Mehmood Idrees Qamar, Chartered Accountants. Auditors are on the approved list of auditors published by the State Bank of Pakistan (SBP).
Assigned rating incorporates the Company’s ownership and governance framework, which may be strengthened by increasing the board size and adding independent and certified members. With overlapping membership observed across the Company’s board committees, expanding the board may also help reduce such repetition. Disclosure levels of the Company are considered sound. Client services are supported by the provision of online trading platforms to facilitate seamless transactions, while the disclosure of commission rates on the website has been noted positively. However, investor grievance procedures may be enhanced for greater visibility on the website. While contingency measures are in place, outsourcing offsite backups to a third-party warehouse and increasing the frequency of disaster recovery exercises may further strengthen these measures. The internal control framework of the Company may also be improved by expanding the scope of internal policies. Rating also takes note of the non-compliances highlighted during the joint inspection and a penalty imposed by PSX, which was removed following acknowledgement of subsequent compliance by the appellant committee. Going forward, ensuring compliance with all applicable regulations will remain important from a ratings perspective.
Assessment of the Company’s financial profile reflects continued revenue growth, supported by healthy income from ready-future operations and brokerage services, in line with the overall positive industry trend. Consequently, operational efficiency has improved notably. The Company’s market risk remains low; however, its liquidity profile has worsened. Gearing and leverage indicators of the Company have increased, though sponsor support continues to underpin capitalization. Going forward, sustained sponsor support, revenue diversification and growth, management of market risk, and improvements in liquidity and capitalization will remain important for the rating.
For further information on this rating, please 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