VIS Assigns Initial Broker Fiduciary Rating to StocXinvest (Private) Limited - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- May 18, 2023 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited. (VIS) has assigned initial Broker Fiduciary Rating of 'BFR4++' to StocXinvest (Private) Limited. The assigned rating denotes adequate fiduciary standards. Outlook on the assigned rating is 'Stable'. Rating signifies adequate internal controls, regulatory compliance, ownership and governance, management and client services, and business and financial sustainability.

The Company has been recently established on 16th of November, 2022. Given the initial stage, governance framework offers room for improvement. At present, Board consists of two directors with no board level committees in place. Increasing the Board size and addition of independent Board members may assist in establishment of Board Committees, strengthening governance framework. Management and client services are also considered adequate with provision of full-scale online services to facilitate customers underway, while contingency and data backup measures in place. Going forward, availability of research resources, and increase in geographical footprint may be important.

Internal controls and regulatory compliance are also considered adequate. Scope of policies may be enhanced with time to strengthen internal controls. Compliance department has been established, however, an independent compliance head may be considered. Internal audit is outsourced. Risk management may be enhanced with establishment of an independent...