Press Release

VIS Assigns Reaffirms Broker Management Rating of Standard Capital Securities (Private) Limited

Karachi, May 12, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of ‘BMR2’ assigned to Standard Capital Securities (Private) Limited (SCSPL). Assigned rating denotes sound management quality. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on 3rd December, 2021.

The rating signifies strong client relationship and sound external framework. Compliance and risk management, HR and infrastructure, financial management, internal controls and regulatory requirements are considered adequate.

Reaffirmation of the rating takes note of SCS’s strong client relationship management, sound supervision and adequate regulatory framework. The board consists of three members representing four board committees, inclusion of independent and certified director may be considered to enhance governance framework and prevent repetition in board committees.

Rating also takes note of sound external control framework while internal control framework is considered adequate. Improving disclosure levels by adding the director's report and CEO's statement to the financial statements may be considered while internal control framework can be further strengthened through enhancing the scope of all internal policies. The assigned rating also takes into account the SCS’s adequate HR & infrastructure, compliance & risk management. Independent reporting of internal audit to the Board may be considered for enhancing transparency and overall risk management framework.

Assessment of financial profile indicates deterioration of the Company’s operational profile on account of subdued market activity along with decline in trading volumes. Profitability was also impacted due to capital and unrealized losses on re-measurement of investments, the Company posted a negative bottom-line. Decline in revenues and subsequent capital losses also deteriorated the Company’s cost-to-income ratio. Market risk continues to remain elevated while liquidity profile is considered sound. Gearing indicator remained manageable however leverage ratio has increased on account of increase in total liabilities. Going forward, augmentation in revenue streams in order to mitigate operational risk, improvement in cost to income ratio and capitalization indicators along with maintenance of liquidity profile will remain important for the rating.

SCSPL is a private limited company holding 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: 106) at (021) 35311861-66 or email at

Muhammad Bilal Aftab

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 .