Rating Details	Rating Type	BFR
	Dissemination Date	Current (21-Aug-25 )	Previous (23-Aug-24)
	Action	Maintain	Maintain
	Rating	BFR 2+	BFR 2+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	IGI Finex Securities Limited ("IGI" or "The Company") is a wholly owned subsidiary of IGI Holdings Limited, part of the Packages Group. A minimal shareholding is also held by its four directors.
	Governance	The Board of IGI consists of four directors, including the CEO, with the presence of two non executive directors. For added oversight, the Board has constituted three committees. The inclusion of an independent director may further strengthen the governance framework.
	Management and Client Services	IGI is backed by a qualified management team with a lean structure for efficiency, offering client services such as research support and online trading facilities to enhance customer experience.
	Internal Controls and Regulatory Compilance	An effective internal control framework is further strengthened by an outsourced internal audit function. Separate departments are in place for risk management and compliance, and the Company has established all requisite policies and procedures to ensure a strong control environment.
	Business Sustainability	IGI business sustainability is supported by its affiliation with the Packages Group, with revenue rising to PKR 166 million in 1QCY25 (SPLY: PKR 49 million), though net profit declined to PKR 58 million from PKR 70 million on higher costs.
	Financial Sustainability	IGI operates without a proprietary book, limiting market risk, and maintains a strong capital position with equity of PKR 921 million and a regulatory Liquid Capital Balance of PKR 702 million as of 1QCY25..

Key Rating Drivers

The BFR rating of IGI Finex Securities Limited is underpinned by the strong support of the Packages Group, which provides financial stability, market credibility, and long term sustainability. The Company benefits from a low leverage capital structure, limiting financial risk, along with the absence of a proprietary book, which reduces exposure to market volatility. The rating is further strengthened by sound governance practices, the presence of specialized board-level committees, and a qualified and experienced management team. Nonetheless, the rating remains constrained by the Company’s sensitivity to cost pressures and its dependence on overall market dynamics for profitability.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	06-Jan-94
	Type of License	Trading and Self-clearing
	Majority Ownership	IGI Holding Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25	Sector Study | Brokerage Firms | Feb-25

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