Karachi: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating for Investment Managers Securities Private Limited (IMSPL) at ‘BMR3’, indicating a stable outlook. The confirmation, announced initially on May 30, 2023, reflects a consistent assessment of the brokerage’s operational and governance standards.

According to VIS Credit Rating Company Limited, the rating affirmation recognizes IMSPL’s robust external control framework and adequate regulatory compliance, financial management, and IT services. The evaluation also highlights sound risk management, client relations, and internal controls, which collectively underpin the firm’s stable outlook.

IMSPL, established in 2006, offers equity brokerage services to both retail and institutional clients and holds a Trading Rights Entitlement Certificate (TREC) from the Pakistan Stock Exchange for trading and self-clearing services. The company’s auditors, Nasir Javed Maqsood Imran and Co.—Chartered Accountants, are categorized under ‘B’ by the State Bank of Pakistan’s approved auditors list.

The rating also considers the potential for governance enhancements, such as adding independent certified members to its board to avoid overlaps and establish additional board committees. VIS notes the possibility for IMSPL to enhance its client services by improving online and mobile trading platforms, research access, and investor grievance mechanisms. These adjustments could further solidify the company’s client relationship management and compliance frameworks.

Financially, IMSPL has shown improvement with increased brokerage revenues and market activity, leading to better operational efficiency. Although the company maintains a solid liquidity profile, its relatively small equity base and the need for revenue diversification remain areas for future focus to sustain and possibly improve its credit rating.