Press Release

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

Karachi, September 29, 2022: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to Standard Capital Securities (Private) Limited (SCSPL). Outlook assigned on the rating is ‘Stable’.
The rating signifies sound client management services, internal controls and risk management, while ownership and governance and business and financial sustainability are considered adequate
The assigned rating takes into account sound internal controls and client management services. Well-defined policies along with measures ensuring client’s confidentiality are also implemented. However, scope of employee trading policy may be enhanced to further strengthen the control framework. Overall, management and client services are considered sound. Implementation of a fully integrated ERP platform may be considered to enhance operational efficiency. Rating also incorporates adequate ownership and governance levels on account of limited board size of only two members. Inclusion 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 also be considered to improve overall disclosure levels.
Business and financial sustainability of the Company is considered adequate. The Company’s earning profile witnessed notable improvement, primarily on account of an increase in core brokerage income. However, during HFY22, the Company reported a negative bottom-line causal to reduced market activity, which affected brokerage business revenues. Resultantly, cost to income ratio also registered decline end-HFY22. While liquidity profile is satisfactory, capitalization indicators are adequate however, leverage ratio was reported to be on the higher side. Market risk is elevated on account of higher proprietary trading during HFY22, managing exposure against proprietary book will remain important for rating. Going forward, revenue diversification and augmentation will remain important for improvement in profitability profile and higher equity base.
For further information on this rating announcement, please contact Ms. Syeda Batool Zaidi (Ext: 210) or the undersigned (Ext: 306) at (021) 35311861 or email at
Faryal Ahmad Faheem Deputy CEO
Applicable Rating Criteria: Broker Fiduciary Rating 2021:

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited