PACRA maintains the Broker Management Rating of JS Global Capital Limited
|Rating Type||Broker Management|
The rating reflects JS Global Capital Limited’s ("JSGCL" or "The Company") leading position in the brokerage industry and carries the legacy of stock brokerage business. The rating incorporates the stable market share, competitive position, automotive technological framework and exclusive outreach to retail segment. JSGCL has well experienced management team, sound governance framework and well established compliance protocols which bodes well for the rating. The Company has implemented strong control environment to deliver quality service to its clients. The internal audit function of the Company is outsourced to 'category 'A' auditor which further strengthen the control environment. The rating derives comfort from the company’s investing policy, limiting the market risk and liquidity risk. Assessment of earning profile indicates swift escalation parallel with the improvement in traded volumes of the stock market, however, the advisory and consultancy income needs to be intensified. The rating also reflects the company's strong financial profile with Net Capital Balance of ~PKR 934mln at end Sep’20. Furthermore, JSGCL has zero leveraging structure. Going forward, with a focus to provide quality services and continue to be a market leader, the company has deployed an internationally acclaimed brokerage house software ‘Mubasher’ in parallel to its existing system and implemented internally. The rating take into account the Company's association with a leading financial group,'JS Group' of the country.
Strengthen market share, sustainable profits, sound internal controls, client relationship, HR & IT services and risk management framework, regulatory compliance, external control environment will remain imperative. Further, rational diversification of business activity may provide support to the company’s overall financial risk profile.
JS Global, with commercial operations starting in May 2003, carries the legacy of stock brokerage business initiated in the early seventies by Mr. Jahangir Siddiqui. With its head office based in Karachi, the company operates with eight branches across the country. Its main activities include brokerage, corporate finance, financial advisory, forex, and money market activities. The company is listed on the Pakistan Stock Exchange (PSX). JS Bank Limited (JSBL) is the major shareholder of the company holding ~84% stake in JS Global Capital Ltd. Along with brokerage services, JS Global provides financial advisory services as well. The board of directors (BoD) of JS Global comprises eight experienced professionals, including the CEO.