Karachi, VIS Credit Rating Company Limited (VIS) has reaffirmed the Broker Fiduciary Rating of Topline Securities Limited (TSL) at 'BFR2', indicating strong fiduciary standards with a stable outlook.

According to VIS Credit Rating Company Limited, this rating, last updated on November 24, 2022, reflects TSL’s sound governance, business sustainability, and strong regulatory compliance.

Topline Securities, holding a trading and self-clearing license, operates in various sectors including stock brokerage, commodity brokerage, and advisory services among others. The company, primarily owned and led by CEO Mohammad Sohail, caters to both local and foreign clients offering online and assisted trading services. TSL’s strong governance is highlighted by an increase in the number of independent directors from one to two and the effective functioning of its board committees.

The reassessment also notes improvements in the company’s disclosure levels and management services. TSL’s commitment to client service is demonstrated through the availability of research reports on social media and robust disaster recovery mechanisms, including offsite backups. The internal control framework and enhancements to the Employee Trading Policy (ETP) are recognized positively, contributing to TSL’s regulatory compliance strengths.

Financially, TSL showed a rebound in earnings during the first half of FY24, driven by increased trading activity. The company’s liquidity is supported by substantial liquid assets, ensuring coverage for current liabilities. Despite moderate increases in leverage, TSL’s capitalization indicators remain robust with a low gearing ratio. Future ratings will depend on TSL's ability to grow revenue, improve operational efficiency, and maintain its solid capitalization and liquidity profiles.