Press Release

VIS Reaffirms Broker Management Rating of Investment Managers Securities Private Limited

Karachi, September 06, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of Investment Managers Securities Private Limited at ‘BMR3’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on May 30, 2023.

The rating signifies sound external control framework. Regulatory compliance levels, financial management, HR & IT services, internal control framework, risk and compliance levels as well as client relationship and fairplay are considered adequate.

Investment Managers Securities Private Limited (IMSPL) was incorporated in 2006. The Company is engaged in the provision of equity brokerage services to its retail and institutional clients. The Company holds a Trading Rights Entitlement Certificate (TREC) for providing trading and self-clearing services granted by Pakistan Stock Exchange Limited External auditors of the Company are Nasir Javed Maqsood Imran & Co. – Chartered Accountants. Auditors belong to the B category on SBP’s approved list of auditors.

Assigned rating takes into account the Company’s regulatory & supervisory framework. Inclusion of independent and certified members in the board may improve the overall governance framework. Additionally, it may also help avoid the repetition of common members in board committees as well as establish more board committees. Internal control framework is considered adequate, with room for improvement in the same through enhancement of scope of existing policies and trading procedures. On the other hand, external control framework is considered sound, however, appointment of A category auditors may further enhance disclosure levels. Rating also takes note of the Company’s client services where improvement may be achieved with providing enhanced facilitation tools such as online trading platforms, mobile trading application, research report and availability of trade alerts via email or mobile devices. Similarly, improving investor grievance measures through the availability of complaint registering and tracking may also be considered. Assigned rating also considers the Company adequate HR and infrastructure as well as compliance and risk management, Going forward, improvement in the compliance and risk management function will remain important from the rating perspective.

Assessment of the Company’s financial profile reflects an improvement in the Company’s earning profile on the back of increase in brokerage revenue amid higher market volumes. Consequently, the Company’s operational efficiency improved to a moderate level. The liquidity profile is considered sound while capitalization profile is considered adequate, however, the equity base remains small. Going forward, augmenting the revenue base along with maintaining capitalization and liquidity profile will remain important for the rating.

For further information on this rating, please contact 021-35311861-64 or email at info@vis.com.pk.



Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .