Press Release
VIS Reaffirms Broker Management Rating of Standard Capital Securities (Private) Limited
Karachi, July 02, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Standard Capital Securities (Private) Limited at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on May 22, 2024.
The rating signifies strong client relationship & fair play, along with sound external control framework, effective internal control framework and supervision framework. Compliance and risk management, financial management, HR and infrastructure, and regulatory requirements are considered adequate.
Standard Capital Securities (Private) Limited was incorporated in 1998, providing full scale equity brokerage services to institutional as well as individual clients. Shareholding of the company is vested with members of the Chamdia family including the Chief Executive Mr. Naushad Chamdia. The Company has three offices in Karachi and one in Sialkot. SCS provides both online and assisted trading services to its clients. SCSPL is a private limited company holding Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading & Self-Clearing Services. External auditors of the Company are category ‘A’ chartered accountants on the approved list of auditors published by the State Bank of Pakistan (SBP).
Assigned rating takes into account the Company’s ownership and governance framework, characterized by a limited board size of three members with no independent representation and three board committee, with repetition observed across these committees. expanding board size together with the inclusion of independent and certified directors may further enhance the governance framework and avoid repetition of members across board committees. External control framework of the Company is considered sound. Client relationship & fair play of the Company is considered strong, supported by multiple trading platforms and educational resources offered to clients.. While contingency measures are in place, maintaining offsite backups at a third-party warehouse may further strengthen the Company’s contingency framework. The rating also takes note of non-compliances related to National Clearing Company of Pakistan Limited (NCCPL) and Central Depository Company (CDC) regulations, along with a penalty imposed by PSX. Going forward, ensuring full compliance with all applicable regulatory requirements will remain important from a rating perspective.
Assessment of the Company’s financial profile reflects a strong rebound in the Company’s profitability, driven by higher capital gains as well as an increase in brokerage revenue amid favorable market conditions. Consequently, the Company’s operational efficiency improved. Liquidity profile of the Company remained sound while market risk of the Company is elevated given its active engagement in proprietary trading. While the Company’s equity base has witnessed a sizeable increase and gearing is on the lower side, leverage indicator has increased. Going forward, continued enhancement in profitability and revenue, along with improvement in market risk and leverage indicator as well as maintenance of operational efficiency, liquidity profile and gearing 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 Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf