Press Release
PACRA Assigns Initial Broker Fiduciary Rating to IGI Securities Limited
Date: 27-Aug-21
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (27-Aug-21 ) | ||
Action | Initial | ||
Rating | BFR 2+ | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | IGI is a wholly owned subsidiary of IGI Holdings Ltd. IGI's competitive edge lies in its distinct corporate culture and client centric approach. | |
Governance | IGI has five directors on board including CEO and Chairman. All the directors are executive except the Chairman and possess manifold experience in relevant fields. | |
Management and Client Services | IGI's team comprised of experienced and well trained staff supported by qualified research team with wide coverage of economy and all major sectors as well as state-of-the-art web and mobile trading. | |
Internal Controls and Regulatory Compilance | IGI has formulated employee confidentiality agreement, insider trading guidelines, conflict of interest policy along with KYC and CDD policies. | |
Business Sustainability | The topline of IGI lacks diversification in revenue stream and concentrated to the equity brokerage income. The Company is not running any proprietary book hence less exposed to market risk. | |
Financial Sustainability | Leverage free capital structure and sizable liquid assets against trade related liabilities provide further support to rating. |
Key Rating Drivers |
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 |
Afnan Iqbal afnan.iqbal@pacra.com +92-42-35869504 www.pacra.com |
Methodology | Broker Fiduciary Rating | Jan-21 |
Sector Study | Brokerage & Securities | Jan-21 |
Disclaimer | This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor. |