Press Release
Date: 14-Dec-22
PACRA Maintains Broker Fiduciary Rating of JS Global Capital Limited

Rating Details Rating Type BFR
Dissemination Date Current (14-Dec-22 ) Previous (27-Apr-22)
Action Maintain Initial
Rating BFR 1 BFR 1
Outlook Stable Stable
Rating Watch - -

Rating Rationale Factor Comment
Ownership The assigned rating incorporates the Company's association with one of the prominent conglomerates in the country 'JS Group'.
Governance Being a listed entity, the governance framework is robust, backed by the presence of independent and non-executive directors.
Management and Client Services JSGCL has a well-defined organizational structure headed by seasoned professionals. Well drafted policies are in place to ensure high quality of client services.
Internal Controls and Regulatory Compliance JSGCL has a strong control environment supported by internal audit at group level reporting directly to the audit committee.
Business Sustainability The recent volatility in trading volumes have heightened the exposure to business risk. Going forward, JSGCL plans to further solidify its business model with enhancement in market share and diversity
Financial Sustainability JSGCL does not engage in Proprietary-Book, thus minimizing market risk. Capitalization indicators are strong with a low leveraged capital structure.

Key Rating Drivers The rating reflects the overall strength of the Company in the brokerage space. The rating signifies a strong internal control framework whereby the internal audit is performed at the group level while a separate compliance department and a dedicated risk manager also provide support. JS Global Capital Limited (JSGCL) provides its clients with online trading, a mobile app, complaint management, dedicated research, and a real-time reporting mechanism. The rating takes comfort from the strong ownership and governance framework emanating from its association with the JS Group. However, the independence of the risk management function may be considered to enhance regulatory compliance. In tandem with the decline in market volumes, the revenue from equity brokerage declined; however, the dividend and margin financing income provided support to the bottom line. The rating derives comfort from JSGCL's policy to not partake in Proprietary-Book; limiting the market risk. Going forward, sustainability and improvement in core revenue and profitability remain critical. Meanwhile, upholding strong internal controls, retention of key management, and diligent risk monitoring is important. Listed in 2005, JSGCL is part of one of the most prominent groups in the financial industry. JSGCL primarily provides the services of Equity Brokerage, Corporate Finance, and Research while Margin Financing is also available.

About the Entity
Legal Structure Listed
Year of Establishment 28-Jun-00
Type of License Trading and Self-clearing
Majority Ownership JS Bank Limited

Regulatory Disclosures Analyst Applicable Criteria Related Research
Afnan Iqbal

Methodology | Broker Fiduciary Rating | Jan-22

Sector Study | Brokerage & Securities | Jan-22

Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.