Press Release
VIS Reaffirms Broker Management Rating of Fortune Securities Limited
Karachi, June 18, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Fortune Securities Limited (‘FSL’ or ‘the Company’) at “BMR2”. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on February 27, 2024.
The rating signifies strong external control framework, sound HR, infrastructure, internal control framework, client relationship, fair play and compliance and risk management while regulatory requirement and supervision, as well as financial management are considered adequate.
FSL is a public unlisted company incorporated in 1994. The Company is principally engaged in brokerage of shares, securities, commodities, research and other financial services. Major shareholding of the Company is vested with Mr. Anis Ur Rahman who serves as the Chief Executive Officer of the Company. FSL runs its operations through two of its offices located in Karachi. Fortune Securities Limited has a TREC (Trading Right Entitlement Certificate) for Trading and Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are category ‘A’ Chartered Accountants on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating takes into account the Company’s governance framework, which may be further improved by increasing the board size and including independent directors. While the internal policies of the Company are in place, enhancement in the scope of these policies may further improve the Company’s internal control framework. Additionally, dissemination of conflict-of-interest policy with both staff and customers is desirable for further strengthening of the internal control framework of the Company. External control framework is supported by strong disclosure levels. The Company’s client services are supported by provision of various electronic trading platforms including mobile and web-based trading, ensuring seamless trade transactions. However, client service features may be further enhanced by increasing the visibility of grievance procedures on the website and providing prompt trade execution alerts to clients. Contingency measures of the Company may be further strengthened by outsourcing offsite backups to a third party. Compliance and risk management function of the Company are considered sound, with independently functioning internal audit and compliance departments. A separate risk management department will further improve risk management framework.
Assessment of the financial performance of the Company indicates growth in the Company’s brokerage revenue, in line with the industry trend. Moreover, the Company’s operational efficiency witnessed a notable improvement. Liquidity profile of the Company is considered adequate. The Company carries a minimal market risk. Capitalization profile of the Company is supported by its low debt profile, while leverage indicators are at manageable levels. Going forward, enhancement in revenue and profitability along with improvement in operational efficiency and liquidity profile as well as maintenance of capitalization indicators will be important for the rating.
For further information on this ratings announcement, 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