Press Release

VIS Reaffirms Broker Management Rating of Mohammad Munir Muhammad Ahmed Khanani Securities Limited (MMMAKSL)

Karachi, January 16, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Mohammad Munir Muhammad Ahmed Khanani Securities Limited (MMMAKSL) at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on August 17, 2022.
Mohammad Munir Muhammad Ahmed Khanani Securities Limited is a public unlisted company, providing equity and commodity brokerage services and research to institutional as well as retail clients. Major shareholding of the Company is vested with Mr. Muhammad Munir Khanani, who serves as the Chief Executive Officer (CEO) of the Company. The Company provides both online and assisted trading services to its clients, and has offices in Karachi, Lahore, Hyderabad and Islamabad. The Company holding Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), registered with SECP to provide Trading & Self Clearing Services. External auditors of the Company are Rehman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The assigned rating signifies strong compliance and risk management framework. Regulatory requirements, internal & external controls, client relationship and HR & infrastructure are sound while financial management and supervision framework is considered adequate. The assigned rating accounts for the sound regulatory and adequate supervisory framework. At present, the board is comprised of 5 board members including two independent members and three board level committees. Inclusion of female representation & certified board member may enhance overall governance framework and board diversity.
The rating also incorporates operational independence of internal audit and compliance functions. However, separation of risk management function under independent supervision may enhance risk management framework. Internal and external controls are sound. Internal control policy is in place, the same may be improved by the inclusion of comprehensive guidelines for minimum holding period in Employee Trading Policy (ETP). Inclusion of CEO statement, director’s report and statement of compliance with code may strengthen external control framework. Client relationship is sound; availability of market research material and online analytics is ensured exclusively for the Company’s clients. Modern client facilitation tools including mobile and web-based trading terminals are available.
Operating profile of MMMAKSL remained under pressure due to contraction in market volume, worsening economic indicators and uncertain political conditions. During the year, recurring revenue deteriorated to Rs. 223m (FY22: 329m) on account of decrease in overall core brokerage income. Market efficiency worsened to 88% from 43% in FY22. Moreover, market risk and capitalization indicators remained manageable, short term investment to equity remained around 38.42% in FY23 (FY22: 52.47%). Whereas, liquidity profile of the Company remained adequate. Capitalization of the Company remained manageable with gearing and leverage ratios standing at 0.25x (FY22: 0.54x) and 0.56x (FY: 0.99x) respectively. Going forward, improvement in the Company’s earning profile, sustainability of capitalization indicators improvement in cost to income ratio along with market share will remain important for rating.
For further information on this rating announcement, please contact Dr. Jahanzaib Alvi (Ext: 106) at (021) 35311861-66 or email at

Syed Asif Ali
Executive Director

Applicable Rating Criteria: Broker Management Ratings:

VIS Rating Scale

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