Press Release

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

Karachi, May 18, 2023: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR4++’ to StocXinvest Securities (Private) Limited. The assigned rating denotes adequate fiduciary standards. Outlook on the assigned rating is ‘Stable’.

Rating signifies adequate internal controls, regulatory compliance, ownership & governance, management & client services, and business & financial sustainability.

The Company has been recently established on 16th of November, 2022. Given the initial stage, governance framework offers room for improvement. At present, Board consists of two directors with no board level committees in place. Increasing the Board size and addition of independent Board members may assist in establishment of Board Committees, strengthening governance framework. Management and client services are also considered adequate with provision of full-scale online services to facilitate customers underway, while contingency and data backup measures in place. Going forward, availability of research resources, and increase in geographical footprint may be important.

Internal controls and regulatory compliance are also considered adequate. Scope of policies may be enhanced with time to strengthen internal controls. Compliance department has been established, however, an independent compliance head may be considered. Internal audit is outsourced. Risk management may be enhanced with establishment of an independent risk management function.

The Company has started with a trading only license with a relatively small equity base. Short-term investments to equity remain manageable. Managing market risk will remain important, going forward. Liquidity remains sound for now while capitalization profile is considered adequate. Going forward, augmentation in revenue base through diversified income streams, maintenance of low cost to income ratio together with maintenance of gearing and leverage indicators within a reasonable range will remain important for rating.

The company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading Only (TO) services. External auditors of the company are Parker Russell - A.J.S. External auditors belong to category ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

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

Sara Ahmed

Applicable Rating Criteria: Broker Fiduciary Ratings 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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .