Press Release
PACRA assigns Initial Broker Fiduciary Rating to Khadim Ali Shah Bukhari Securities Limited
Date: 26-May-21
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (26-May-21 ) | ||
Action | Initial | ||
Rating | BFR 3+ | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | Major shareholding of the Company lies with Oxford Frontier Capital Limited i.e. ~44%. The sponsors' profile of the Company is considered good. | |
Governance | On governance front, the Company is in process of improving its Board Structure in compliance with CCG. | |
Management and Client Services | Management team is well experienced while integration of technology into systems results in high efficiency and customer satisfaction. | |
Internal Controls and Regulatory Compilance | Risk management framework and systems are adequate and company remains compliant with all applicable regulations. | |
Business Sustainability | The Company registered a considerable growth amidst augmentation in client base but rating is constrained by the Company's significant dependence on equity brokerage income. | |
Financial Sustainability | The Company is engaged in proprietary trading, albeit the quantum of proprietary investment is very low but exposes the Company to market risk. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Public Limited |
Year of Establishment | 25-Apr-13 |
Type of License | Trading and Self-clearing |
Majority Ownership | Oxford Frontier Capital Limited | ~60% |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Madiha Sohail madiha.sohail@pacra.com +92-42-35869504 www.pacra.com |
Methodology | Broker Fiduciary Rating | Jan-21 |
Sector Study | Brokerage & Securities | Jan-21 |
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. |