Press Release

VIS Assigns Broker Fiduciary Rating to Intermarket Securities Limited

Karachi, July 04, 2023: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3+’ to Intermarket Securities Limited (IMSL). Rating of BFR3+ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.

The rating signifies sound management and client services and internal controls while governance framework and business and financial sustainability is considered adequate.

Assigned rating takes into account Company’s adequate governance framework. The board of directors consists of three members and one independent director. Increasing board size through addition of certified members may be considered for formation of independently represented board level committees. The Company has a sound internal control framework. However, having an independent risk management framework along with enhancement in scope of internal policies may be considered to further strengthen the framework. Rating also factors in the sound management and client services, however, investor grievance procedures may be improved and research reports may be made available on the website may further strengthen the client services. Similarly, client management tools may require further improvement for greater visibility on website. Disaster recovery practices are in place, which may be improved by increasing the frequency of disaster recovery practices along with backing up data at additional off-site locations.

Financial profile of the Company indicates a deterioration in the earning profile on account of decline in the core income owing to slowdown in market activities and lower trading volumes. The efficiency ratio depicts improvement, albeit remains on the higher side. Curtailment of administrative expenses along with the recovery in revenues will remain important. Liquidity profile of the Company is adequate while capitalization indicators are considered manageable. Market risk is on the lower side. Going forward, improvement in the Company’s earning profile along with improvement in cost to income ratio, maintenance of capitalization indicators and improvement in liquidity profile will remain important for rating, going forward.

IMSL is a public unlisted company principally engaged in provision of equity brokerage services for domestic and international retail and institutional clients. Majority shareholding in IMSL is vested with the Bilwani Family. Currently, the brokerage operates through its head office based in Karachi. The company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing services issued by the Pakistan Stock Exchange Limited (PSX).

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 Fiduciary Ratings 2021:

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .