Press Release

VIS Reaffirms Broker Fiduciary Rating of FDM Capital Securities (Private) Limited

Karachi, January 03, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Fiduciary Rating of ‘BFR3’ to FDM Capital Securities (Private) Limited (FDMCSL). Outlook assigned on the rating is ‘Stable’. Previous rating action was announced on August 31, 2022.

The rating signifies sound internal control and regulatory compliance, while ownership and governance, business and financial stability and management and client services levels are adequate.

The assigned rating takes into account sound internal controls and regulatory compliance. Well-defined policies including conflict of interest and employee trading policies are in place. Measures ensuring client’s confidentiality are also implemented. Rating also incorporates adequate ownership and governance levels on account of limited board size. Enhancement in representation of independent and certified directors may improve its governance structure. Increasing scope of disclosures with addition of director’s report, CEO’s statement, and statement of compliance code may improve overall disclosure levels. Overall, management and client services are considered adequate. Implementation of a fully integrated ERP platform may enhance operational efficiency. Moreover, disclosure of research reports and commission rates on website may enhance customer satisfaction.

Business and financial sustainability of the Company is also considered adequate. The Company’s earning profile was impacted during FY22, primarily due to reduced market activity, which affected brokerage business revenues. Cost to income ratio as a result registered an increase. Capitalization indicators remains manageable with marginal increase in gearing and leverage. Market risk of the Company as of FY22 remains manageable. Maintaining the same going forward, remains important. Rating remain sensitive to improvement in revenues and operational efficiency along with sustainability of capitalization indicators.

For further information on this rating announcement, please contact Ms. Syeda Batool Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Rating 2021:

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