Karachi: Growth Securities (Pvt) Limited received its initial Broker Fiduciary Rating of BFR3+ from VIS Credit Rating Company Ltd., indicating good fiduciary standards with a stable outlook. This assessment reflects the company’s sound business practices and financial sustainability.
According to VIS Credit Rating Company Limited, Growth Securities, established in 2005 under the Companies Act 2017, excels in ready-future arbitrage trading and equity brokerage services, primarily serving domestic clients. Registered with the Securities and Exchange Commission of Pakistan, the company also holds a Trading Rights Entitlement Certificate from the Pakistan Stock Exchange Limited for trading and self-clearing services. Its external auditors, Baker Tilly Mehmood Idrees Qamar, are recognized by the State Bank of Pakistan.
The rating encompasses areas such as business sustainability, ownership, governance, management, client services, and compliance with regulatory frameworks. Notable strengths include sound disclosure levels and robust financial performance, underscored by a profitable ready-future business and growing brokerage commissions. However, opportunities for improvement were identified in enhancing the governance framework by expanding the board and including more independent and certified directors.
Further enhancements are suggested in the company’s research functions and client services to improve customer satisfaction and expand geographic reach. Internal controls, particularly concerning conflict of interest and employee trading policies, are advised to be strengthened to support regulatory compliance and internal governance.
The financial assessment shows a promising outlook with improved profitability and operational efficiency, though challenges in market risk management persist. The company’s liquidity and capitalization are robust, supported by significant liquid assets and a strong balance sheet. Continued sponsor support and revenue growth, along with effective management of market risks, are crucial for maintaining and potentially improving the company’s fiduciary rating.