Press Release

VIS Assigns Initial Broker Fiduciary Rating to Sherman Securities (Private) Limited

Karachi, September 25, 2023: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3+’ to Sherman Securities (Private) Limited (SSPL). The assigned rating denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.

The rating signifies sound internal controls, management and client services whereas ownership and governance, and financial stability are considered adequate.

Assigned rating takes into account sound internal controls with appropriate policies and procedures in place, however enhancing the frequency of review and dissemination of internal policies to all stakeholders may further strengthen internal control framework. Rating also takes into account adequate ownership and governance framework of SSPL. Governance framework may be enhanced through inclusion of independent and certified members on the Board. Moreover, disclosure levels of the Company are considered to be sound. Management and client services are considered adequate. The company facilitates its clients through availability of multiple tools and resources for executing online transactions. Company’s research material consists of equity research reports, which are disseminated to their clients. However, outsourcing the offsite backups at third party warehouse may strengthen the Company’s contingency measures. Similarly, geographic diversification may assist in future growth of the Company.

Assessment of financial profile of SSPL reflects deterioration in profitability on the back of capital losses coupled with the decline in brokerage revenue owing to contraction in trading volumes. Exposure to market risk is higher on account of sizable proprietary book maintained by the Company. Liquidity profile of the Company is considered sound while capitalization indicators are considered adequate. Going forward, augmenting the revenue base, improving capitalization indicators and operational efficiency as well as managing market risk will remain important for the rating.

SSPL is registered with Securities & Exchange Commission of Pakistan (SECP) and holds a Trading and Self-Clearing (TSC) license and Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants. External auditors are from Category ‘A’ of State Bank of Pakistan’s list of auditors.

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:

VIS Issue/Issuer Rating Scale:

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 .