Press Release
VIS Updates Broker Fiduciary Rating of Sherman Securities (Private) Limited
Karachi, May 12, 2026: VIS Credit Rating Company Ltd. (VIS) has updated the Broker Fiduciary Rating of Sherman Securities (Private) Limited (‘SSPL’ 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 May 04, 2026. suspension
The rating signifies sound internal controls, management and client services. Whereas ownership and governance, and financial stability are considered adequate.
SSPL was incorporated in 2002. The principal activities of the Company are investments, brokerage services, Initial Public Offer (IPO) underwriting, and portfolio management. Majority shareholding is vested with Mr. Muhammad Samin Younus. The Company operates through its head office which is based in Karachi. SSPL is registered with Securities & Exchange Commission of Pakistan (SECP) and holds Trading Rights Entitlement Certificate (TREC) for Trading and Self Clearing (TSC) granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants. External auditors are from Category ‘A’ of State Bank of Pakistan’s panel of auditors.
Assigned rating of the Company incorporates the ownership and governance framework, with a four-member board including one independent director. Expansion of the board size, along with the inclusion of independent and certified directors, may further strengthen the Company’s governance framework and support a more diversified composition across board committees. Rating also takes into account the sound management and client services, which is assessed as sound. However, these may be further enhanced through greater visibility of grievance procedures on the website and availability of an SMS-based complaint management system. Contingency measures of the Company are well in place. While internal policies are in place, expanding the scope of the same may further improve the Company’s internal control framework. Rating also takes note of the non-compliances highlighted by PSX and the associated penalty imposed. Going forward, ensuring compliance with all applicable regulations will remain important from the rating’s perspective.
Assessment of the Company’s financial profile reflects strong profitability in FY25, supported by realized gains on investment followed by growth in brokerage revenue in line with the overall positive industry trend. However, despite continued growth in brokerage revenue during 1HFY26, lower realized gains led to a decline in profitability during the period. While cost-to-income ratio improved, it remained on the higher side. Liquidity profile of the Company remains sound despite weakening, while involvement in the ready future business provides some mitigation against the market risk exposure. The capitalization profile is supported by low debt levels and a sizeable equity base. Going forward, diversifying revenue base, as well as managing market risk, along with improving operational efficiency, and maintaining liquidity and capitalization profile 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-2025/BrokerFiduciaryRating-Nov25.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf