Press Release
VIS Reaffirms Broker Fiduciary Rating of Chase Securities Pakistan (Private) Limited
Karachi, June 18, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Chase Securities Pakistan (Private) Limited from at ‘BFR3+’. Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on March 13, 2024.
The rating signifies good fiduciary standards including sound management and client services, effective internal controls and regulatory compliance, and satisfactory ownership and governance, while business and financial sustainability are considered adequate.
Chase Securities (Private) Limited was incorporated in 2021 as a private limited company. CSPL is principally engaged in the brokerage of shares. The Company caters mainly to domestic institutional and retail clients. At present, CSPL operates through its head office based in Karachi, where it provides both assisted and online trading services. The Company holds 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 listed as category A auditors on the approved list of auditors published by the State Bank of Pakistan (SBP).
Assigned rating takes into account governance framework, marked by an increase in board size from two to four, including the addition of an independent director. Furthermore, the Company has established three additional board committees. However, repetition of members across these committees with similar composition was noted. The Company demonstrates sound disclosure levels. Rating also takes note of the Company’s sound management and client services, with online trading platforms in place, ensuring seamless transactions experience by clients. Contingency measures are in place, with periodic disaster recovery exercises. Internal policies of the Company are also in place. However, broadening their scope, particularly with regard to the conflict-of-interest policy and employee trading policy, may further strengthen the internal control framework. Furthermore, enhancing the frequency of internal audits to review the control environment and compliance levels, along with more frequent trade reviews for non-compliant or suspicious transactions, may contribute to improved oversight and risk mitigation.
Assessment of the Company’s financial profile reflects a robust growth in the Company’s operating revenue, largely supported by a substantial increase in commission income, with the upward trend sustaining in 1HFY25. As a result, operational efficiency also improved. The Company has a minimal market risk, given its limited portfolio of proprietary investments. The liquidity profile of the Company has weakened along with rise in the gearing and leverage ratios, reflecting adversely on financial risk profile of the Company. However, the short-term loan extended by the director demonstrates implicit sponsor support, providing support to the Company’s financial profile. Going forward, improvement in gearing, leverage, and liquidity metrics, alongside maintaining other financial indicators, will be important for the rating.
For further information on this ratings announcement, 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