Press Release

VIS Reaffirms Broker Management Rating to FDM Capital Securities (Private) Limited

Karachi, January 03, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of ‘BMR3++’ assigned to FDM Capital Securities (Private) Limited (FDMCSPL). Outlook on the assigned rating is ‘Stable’. Last rating action was announced on November 29, 2021.

The rating signifies sound external control, whereas client relationship, compliance and risk management, regulatory requirements, internal controls, financial management, and HR and infrastructure are considered adequate.

Rating takes note of the Company’s adequate regulatory requirements and supervision framework. Inclusion of additional independent and certified members in the board may enhance governance levels. Client relationship and fair play is also considered adequate. Enhancements in client servicing tools may be considered for enhanced visibility and greater customer satisfaction.

Rating also takes note of sound external control framework. However, external control framework maybe strengthened through enhancing disclosure levels. Internal controls remain adequate. Enhancing the scope of policies may be considered for strengthening internal controls. e. Compliance and risk management are adequate; segregation of risk and compliance would further amplify the scope of the company’s existing credit policy. HR and infrastructure is also adequate, with full integration of the company’s ERP platform; meanwhile, geographical diversification would provide stability to the company’s path of growth.

Assessment of financial profile indicates deterioration in the Company’s earning profile due to decline in core brokerage income owing to slowdown in market activity during FY22. Subsequently, cost to income ratio also witnessed a significant increase. Capital loss booked against investment portfolio also impacted profitability in FY22. Liquidity position is considered strong while given small equity base, market risk exposure on the investment portfolio is on the higher side. Capitalization indicators remain adequate with a small base equity and low gearing, mostly secured from Directors. Improvement in profitability profile will remain important together with maintenance of capitalization and liquidity indicators.

FDMCSPL is a private limited company and is principally engaged in brokerage of shares in ready and future market to local retail clients. It holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading & Self-Clearing Services.

For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Broker Management Ratings 2020

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 .

VIS Credit Rating Company Limited