Press Release
VIS Assigns Initial Broker Fiduciary Rating to Insight Securities (Private) Limited
Karachi, August 03, 2026: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3++’ to Insight Securities (Private) Limited (‘INSL’ or ‘the Company’). Rating of ‘BFR3++’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.
The rating signifies sound business & financial sustainability, management & client services, and internal controls & regulatory framework, while ownership and governance is considered adequate.
INSL 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. Nevertheless, disclosure levels of the Company are considered sound. Management and client services of the Company are considered sound, supported by ERP platform for back-office operations along with online trading platforms for customers, with prompt alerts upon trade execution. However, these may be further enhanced by enhancing customer grievances procedures for greater visibility on website. Additionally, The Company may consider expanding its geographical footprint to increase client outreach and support business development activities. Contingency measures of the Company are in place. Internal policies of the Company are in place. However, periodic review of order recording system may further enhance the Company’s internal controls.
Assessment of the financial profile of the Company reflects a strong profitability profile, supported by higher income from realized gains on sale of investments, followed by growth in brokerage revenue, in line with overall positive industry trend. The cost-to-income ratio of the Company is considered at fair level. The Company’s liquidity profile is considered sound, while exposure to market risk remains elevated. The capitalization profile of the Company draws support from low-leveraged balance sheet, with no interest-bearing debt, along with a sizeable equity. Going forward, Company’s ability to enhance and diversify its revenue streams, managing market risk, maintaining operational efficiency, 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