Press Release
VIS Reaffirms Broker Management Rating of Insight Securities (Private) Limited
Karachi, June 16, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Insight Securities (Private) Limited at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on May 14, 2024.
The rating signifies strong compliance and risk management and external control framework. HR & infrastructure, financial management, client relationship & fairplay, supervision framework is considered sound, while internal control framework and regulatory requirements are considered adequate.
Insight Securities (Private) Limited was incorporated in 2006. Insight Securities provides equity brokerage services in ready and future market to local retail clients and institutional clients. The Company holds Trading Rights Entitlement Certificate (TREC) for Trading & Self Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are M/s Grant Thornton Anjum Rehman Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP). The Company operates from Karachi and provides both online and assisted trading services to its clients.
The assigned rating takes note of areas for improvement in the Company’s governance framework, particularly through increasing board size, inclusion of independent and certified directors, and formation of more board-level committees. Additionally, acquisition of other licenses may support revenue diversification. The Company’s external control framework is considered strong, while the internal control framework is assessed as adequate. With potential for further improvement through enhancement in the scope of internal policies. Client relationship and fair play practices may also be strengthened through improved investor grievance procedures and regular publication of up-to-date research reports on the Company’s website. Moreover, disclosure of commission rates on the website may enhance transparency. The Company may consider enhancing its organizational structure to better align with the scale of its operations. While contingency measures are in place, outsourcing backups to a third-party warehouse may further strengthen these arrangements. Overall, the Company has a strong risk management and compliance function.
Assessment of financial profile reflects enhancement in the Company’s brokerage revenue, in line with the overall positive industry trend, while profitability was largely supported by realized and unrealized capital gains. Consequently, the Company’s operational efficiency depicted improvement. The Company’s liquidity profile is considered sound, while market risk is elevated. Capitalization profile is supported by a sizeable equity base and a low-leveraged balance sheet. Going forward, continued growth in revenue and profitability, alongside improvement in market risk exposure and maintenance of liquidity and capitalization profile, will remain important for the assigned 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