Press Release

VIS Reaffirms Broker Management Rating of Intermarket Securities Limited

Karachi, November 06, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Intermarket Securities Limited (IMSL) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on June 22, 2022.

The rating signifies adequate regulatory compliance and financial management, sound internal controls, compliance and risk management framework, HR, IT and client management while external control environment is considered strong.

Rating takes into account adequate governance framework of the Company While board size of the Company remains good, further inclusion of certified members may be considered to further strengthen overall governance framework. Moreover, board committees headed by independent directors may ensure transparency in the governance. Internal policies and procedures of the Company are defined and are in place. However, the scope of the same along with dissemination of policies to all stakeholders may enhance the internal controls of the Company. External controls remain strong. Client servicing procedures are considered sound; further room for improvement exists wherein availability of research reports coupled with disclosure of commission rates on website may be considered. Similarly, investor grievance management tools may be more pronounced through greater visibility on the Company’s website. Rating also takes note of sound HR and infrastructure as well as sound compliance and risk management.

Assessment of financial profile reflects shrinkage in earning profile of the Company on account of decline in revenue brokerage revenue amid challenging macroeconomic environment. Consequently, profitability was also adversely impacted, sustaining losses in FY22 and FY23. Moreover, Company’s cost-to-income ratio was also deteriorated. Similarly, liquidity profile also witnessed deterioration, albeit remains adequate. Market risk is considered on the lower side. Gearing and leverage ratio of the Company has depicted an uptick while equity has shown a reduction due to the losses incurred by the Company. Going forward, enhancing the stream of revenues, while managing costs together with keeping capitalization indicators in check will remain important for rating.

For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 106) at (021) 35311861-64 or email at

Muhammad Bilal Aftab

Applicable Rating Criteria: Broker Management Ratings 2020

VIS Rating Scale

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