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

Dr. Arslan Razaque Securities (Pvt.) Limited (the 'Company') has a focused approach to managing its brokerage operations. The CEO, Dr. Arslan Razaque, effectively oversees proprietary investment portfolio resulting in consistent realized gains. Moving forward, improvement in organizational structure and client services may be needed due to the Company's strategy to focus on retail customers. Meanwhile, topline diversification and profit sustainability remains vital.

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

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