Rating Details	Rating Type	BFR
	Dissemination Date	Current (06-Mar-26 )	Previous (07-Mar-25)
	Action	Maintain	Maintain
	Rating	BFR 3+	BFR 3+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Zafar Securities (Pvt.) Ltd ("ZSPL" or "The Company" is primarily owned by Syed Asim Zafar (83%), Kamran Ali Farooqi (9%), Aleezeh Hussain Farooqi (4.3%), and Manizeh Hussain Farooqi (4.3%).
	Governance	The Board of ZSPL consists of five directors, including the CEO, with the presence of two non executive directors. To enhance oversight, the Board has constituted two committees. The inclusion of an independent director may further strengthen the governance framework.
	Management and Client Services	ZSPL maintains a streamlined organizational structure supported by experienced management team. Client services are well established, including online trading and a mobile application, while research services are still limited.
	Internal Controls and Regulatory Compilance	An effective internal control framework is supported by an in house internal audit function. The Company has also established requisite policies and procedures to maintain a strong control environment and ensure compliance.
	Business Sustainability	ZSPL topline is primarily driven by equity brokerage, generating PKR 105.7 million in brokerage revenue during 1HFY26 (SPLY: PKR 66 mln). The Company reported a net profit of PKR 92 mln (SPLY: PKR 63 mln), reflecting improved profitability.
	Financial Sustainability	ZSPL maintains an equity based capital structure with no reliance on external debt. As of 1HFY26, equity increased to PKR 459.9 million (SPLY: PKR 313 million), reflecting improved capitalization, with a Liquid Capital Balance (LCB) of PKR 239.88 million.

Key Rating Drivers

Fiduciary practices across client servicing, compliance, and core risk oversight remain central to ZSPL control framework, underpinning its BFR rating. However, the absence of independent directors and an independent research function limits governance depth and analytical capabilities. Moving forward, enhancing management capacity, refining internal controls, strengthening client protection, improving grievance and conflict-management mechanisms, introducing independent oversight and research functions, diversifying revenue streams, strengthening market positioning, and enhancing profitability will be critical to sustaining and elevating fiduciary standards and the overall governance and risk management environment.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	28-Jun-99
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Syed Asim Zafar | ~83%

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 Methodology | Rating Modifiers | Apr-25	Sector Study | Brokerage Firms | Feb-25

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