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Karachi: VIS Credit Rating Company Ltd. has reaffirmed the Broker Fiduciary Rating of FDM Capital Securities (Private) Limited at ‘BFR3’, indicating good fiduciary standards. The outlook remains ‘Stable’, with the last rating action announced in March 2024.
The rating reflects the company’s sound management, client services, internal controls, and regulatory compliance. However, areas such as ownership, governance, and business sustainability are deemed adequate, with room for improvement.
FDM Capital Securities, founded in July 2001, specializes in brokerage services for local retail clients and holds a Trading Rights Entitlement Certificate from the Pakistan Stock Exchange. The company’s auditors, M/s Rahman Sarfaraz Rahim Iqbal Rafiq, are recognized in the ‘A’ category by the State Bank of Pakistan.
The rating suggests potential enhancements in governance through board expansion and inclusion of independent directors. Improvements in client services, such as better grievance procedures and increased marketing efforts, are also recommended.
The company’s financial profile showed a rebound in profitability in FY24, driven by increased brokerage revenues and market activity. Operational efficiency improved to a moderate level, with sound liquidity and a debt-free balance sheet.
Future focus will include diversifying revenue, maintaining operational efficiency, and improving market risk and capitalization indicators to uphold the rating.