Press Release

VIS Reaffirms Broker Management Rating of Insight Securities (Private) Limited

Karachi, May 14, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Broker Management Rating of Insight Securities (Private) Limited at ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on November 24, 2022.

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.

Insight Securities (Private) Limited was incorporated in 2006. Insight Securities provides equity brokerage services in ready and future market to local retail clients and institutional clients. The Company holds Trading Rights Entitlement Certificate (TREC) for Trading & Self Clearing Services granted by Pakistan Stock Exchange Limited (PSX). External auditors of the company are M/s 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). The Company operates from Karachi and provides both online and assisted trading services to its clients.

Assigned rating takes into account the Company’s strong risk and compliance framework, however, establishing a separate risk management function may further strengthen the same. Overall, regulatory supervision framework is considered sound however, inclusion of certified and independent members on the board may be considered to strengthen the supervision framework and facilitate the formation of other board level committees. Additionally, acquisition of other licenses may support larger trading activity. While external control framework continues to remain sound, internal control framework is considered adequate; enhancing the scope of internal policies and relevant procedures may be considered. Client servicing procedures are considered adequate, availability of trading tools and resources on Company’s website along with improved investor grievance procedures with greater visibility may be considered. HR and IT infrastructure continues to remain sound.

Overall financial profile of the Company is considered adequate, during the year, the Company’s operating profile witnessed weakening on the back of slowdown in trading activity leading to a decline in core brokerage revenue. Operational efficiency of the Company also worsened, however, the same witnessed slight improvement end-HFY24. While liquidity profile of the Company continues to remain sound, market risk remains elevated. Capitalization indicators continue to remain sound for the year. Going forward, improvement in revenue base, maintenance of capitalization and liquidity indicators and improvement in cost to income ratio will remain important for 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 .