Press Release
VIS Assigns Initial Broker Management Rating to Growth Securities (Private) Limited
Karachi, October 14, 2025: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Management Rating of ‘BMR2’ to Growth Securities (Private) Limited. Outlook on the assigned rating is ‘Stable’.
The rating signifies strong External Control Framework, sound Supervisory Framework, and Client Relationship & Fairplay. Regulatory requirements, Internal Control Framework, HR & Infrastructure, Compliance & Risk Management, and Financial Management are considered adequate.
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 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. While internal policies are in place, broadening their scope may further improve the Company’s internal control framework. Conversely, the external control framework is considered strong. 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. 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 contact 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