Press Release

VIS Assigns Initial Broker Management Rating to Insight Securities (Pvt.) Limited

Karachi, September 28, 2021: VIS Credit Rating Company Ltd. has assigned the initial Broker Management Rating of ‘BMR2’ to Insight Securities (Pvt.) Limited. Outlook on the assigned rating is ‘Stable’.

The rating signifies strong compliance and risk management and sound external control, HR & infrastructure and financial management. Regulatory requirement & supervision, internal controls and client relationship are considered adequate.

Assigned ratings take into account adequate regulatory and supervisory framework of the company with three Board members. Increasing the board size and addition of independent and certified members may assist in the formation of Board level committees for enhancing supervisory framework. External controls are sound however disclosure levels may be enhanced in the financial statements. Internal controls may be strengthened through enhancing the scope of internal policies including development of a separate conflict of interest policy. HR and infrastructure is considered sound with ERP platform and appropriate contingency measures in place, however, having a third-party warehouse as an offsite data backup may be considered. Client services may be more pronounced through greater visibility and communications on website. Geographical diversification may provide sustainability and growth to the business.

The ratings also take into account strong compliance and risk management framework with a well-defined and comprehensive risk policy and third party audit. However, segregating risk management function from compliance may further improve overall risk management framework and assist in credit worthiness evaluation of customers and streamlining of credit limits accordingly. Assessment of financial profile reflects improvement in profitability in FY21, supported by increased market activity translating into higher brokerage revenue and capital gains on investments. Liquidity profile is strong with more than two times coverage. Sound capitalization profile is supported by zero gearing and lower leverage levels. However, market risk exposure is on the higher side given size of equity. Going forward, increasing revenues streams along with maintaining cost to income ratio at reasonable levels will be important for ratings.

Insight Securities (Pvt.) Limited holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), and is registered with SECP to provide Trading & Self Clearing Services. External auditors of the company are Grant Thornton Anjum Rehman Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 201) at (021) 35311861-66 or email at

Javed A. Callea

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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited