Press Release
PACRA assigns Broker Fiduciary Rating to Dr. Arslan Razaque Securities (Pvt.) Limited
Date: 22-Mar-24
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (22-Mar-24 ) | ||
Action | Initial | ||
Rating | BFR 3 | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | Majority ownership vests with Dr. Arslan Razaque (99.98%). The ownership factor is considered good due to the sound financial strength of the primary sponsor. | |
Governance | The BoD consists of Dr. Arslan as an executive director, and his family members as non-executive directors. The structure of the board is congruent to the Company's business plans. | |
Management and Client Services | Management and client services of the Company are in-line with the Company's size and focus towards proprietary investment book. The Company's strategy to focus on retail customers in the future may l | |
Internal Controls and Regulatory Compilance | Regulatory compliances are overseen by a head of compliance. Internal controls are strengthened with the presence of an internal auditor. Whereas having better formed policies and internal procedures | |
Business Sustainability | The Company has a minimal presence in the brokerage space through market connections of the primary sponsor; however, effective management of its proprietary investment book and exposure in leveraged | |
Financial Sustainability | Liquidity indicators are considered adequate, with minimal credit risk exposure on the books; however, proprietary book exposes the Company to market risk. The Company has a low-leveraged capital stru |
Key Rating Drivers |
About the Entity | |
Legal Structure | Private Limited |
Year of Establishment | 24-May-06 |
Type of License | Trading and Self-clearing |
Majority Ownership | Dr. Arslan Razaque (99.98%) |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com |
Assessment Framework | Broker Fiduciary Rating | Jan-24 |
Sector Study | Brokerage & Securities | Jan-24 |
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. |