KARACHI: VIS Credit Rating Company Limited has assigned Initial Broker Fiduciary Rating of ‘BFR3’ to Taurus Securities Limited. Rating of BFR3 denotes good fiduciary standards. Outlook on the assigned rating is stable.
The rating signifies strong ownership and governance, sound management, client services, and internal controls, and adequate business and financial sustainability said a release on Thursday.
Assigned rating takes into TSL’s strong sponsor support with National Bank of Pakistan, Bank of Khyber, and Saudi Pak Industrial and Agricultural Investment Company Limited as major shareholders. In line with the best practices, the board is composed of 8 directors with adequate independent representation. However, increasing the number of certified directors may further strengthen the governance framework.
Management and client services are considered sound; however, client services may be enhanced through the complaint tracking system. The company’s organizational structure is well defined and disaster recovery measures are in place.
Scope of policies and manuals is well defined and credit worthiness evaluation and reviewing of suspicious trade are done on monthly basis, depicting sound internal control and regulatory compliance. Increasing the frequency of review of policies and manuals may further strengthen the internal control framework.
TSL is a public unlisted company providing equity brokerage services along with financial/economic data research analysis. The company holds a Trading Right Entitlement Certificate for trading and self-clearing services issued by the Pakistan Stock Exchange Limited.