Press Release
VIS Reaffirms Broker Fiduciary Rating of DJM Securities Limited
Karachi, August 15, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of DJM Securities Limited (DJMSL) at ‘BFR3’. Rating of BFR3 denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on May 29, 2024.
The rating signifies adequate ownership and governance, management and client services as well as internal controls and regulatory compliance. Business and financial sustainability of the Company is considered sound.
DJM Securities Limited is a public unlisted company incorporated in 2002, providing equity brokerage services to institutional as well as individual clients, in both local and international equity and future markets. Major shareholding of the Company is vested with four individuals including the CEO. The company operates from Karachi and provides both online and assisted trading services to its clients. The Company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange (PSX), and is registered with SECP to provide Trading & Self Clearing Services. External auditors of the Company are BDO Ebrahim & Co, which belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating takes into account the Company’s ownership and governance framework, which is constrained by its board size. Increasing the number of board members, along with the inclusion of independent and certified directors, may further enhance the governance framework and facilitate the establishment of board committees to improve the effectiveness of the overall governance structure. Disclosure levels may be further improved by including director’s report, CEO’s Statement, and Statement of Compliance with the Code in the financial statements, and uploading the same on the Company’s website. Management and client services are considered adequate. Documentation of customer order recording, execution, and confirmation thereof, as well as IT systems, may be strengthened to ensure regulatory compliance and data security in line with PSX standards. Additionally, availability of research reports and commission rates on website may further enhance the client services features of the Company. The Company may consider undertaking invitations and advertisement to enhance customer reach. Internal controls of the Company may be further enhanced through constituting independent internal audit and risk management functions. The rating also takes note of non-compliances highlighted during the joint inspection of the Company. Going forward, adherence to all applicable regulations will remain important from a ratings perspective.
Assessment of the Company’s financial profile reflects a strong rebound in profitability, primarily driven by higher unrealized gains. The cost-to-income ratio remains on the higher side. While the liquidity profile is sound, market risk is elevated. Strengthening of the equity base, in line with improved profitability, has led to a notable improvement in gearing and leverage indicators. Going forward, enhancing revenue base and diversifying revenue streams, along with improving operational efficiency, as well as managing market risk and maintaining 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%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf