Press Release

VIS Assigns Initial Broker Fiduciary Rating to TS Securities (Pvt) Limited

Karachi, February 10, 2025: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating of ‘BFR3’ to TS Securities (Pvt) Limited (TSPL). Rating of ‘BFR3’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’.

The rating signifies adequate business & financial sustainability, ownership & governance, management & client services, and internal controls & regulatory framework.

TSPL was incorporated in 2006 under the Companies Ordinance Act 2017. The Company is engaged in stock brokerage, corporate finance., portfolio management services and trading in equity. The Company is registered with Securities & Exchange Commission of Pakistan and holds Trading Rights Entitlement Certificate (TREC) issued by Pakistan Stock Exchange Limited (PSX) for Trading and Self-Clearing Services. External auditors of the company are Riaz Ahmad Saqib Gohar & Co. Chartered Accountants. Auditors are rated ‘B’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

The assigned rating incorporates the Company’s ownership and governance framework, which may be strengthened by expanding the board size and including independent directors, as this would also facilitate the formation of additional committees. Additionally, appointment of ‘A’ rated auditors may also support the Company governance framework. Management and client services may be enhanced by improving risk disclosure documents and offering research insights, including equity reports, market briefings, and sector research. Additionally, providing prompt trade alerts may further improve client facilitation. While contingency measures are in place, increasing the frequency of disaster recovery exercises may enhance these measures. Internal controls of the Company are in place, however, broadening the scope of internal control policies, including expanding the conflict-of-interest policy and formulating an employee trading policy, along with periodic reviews of the order recording system, and enhancing trade review mechanisms may further improve the internal control framework of the Company. Furthermore, establishing policies and systems to regulate the flow of market-sensitive information between departments, ensuring client confidentiality, may further enhance the Company’s control framework.

Assessment of the financial profile of the Company reflects a rebound in the Company’s earning profile, driven by healthy growth in brokerage commission, supported by higher market activity amid positive investor sentiment. Operational efficiency of the Company is considered high, given low cost-to-income ratio. Liquidity profile of the Company is considered adequate while the market risk is low, given the limited proprietary investments. While the equity base is high and leverage ratio is considered on the higher side, the minimal debt level of the Company provides support to its capitalization profile. Going forward, enhancement and diversification of revenue stream, along with improvement in leverage indicator as well as maintenance of liquidity profile, market risk and operational efficiency will be important for the rating.

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



Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .