Providing relief to the rating agency, the tribunal nevertheless upheld some violations by Brickwork on lapses. However, legal sources sau=y it has asked Sebi to hear Brickwork before passing the new order, which has to contain directions other than cancellation.
In its order dated October 6, Sebi had cancelled Brickwork’s licence and directed the credit rating agency to wind down its operations within six months for allegedly violating various rules. Sebi had highlighted several violations by Brickwork like failure to follow a proper rating process and exercise due diligence while providing ratings.
An enquiry report submitted in April 2021 had several adverse observations against Brickwork, following which it was recommended that its licence should be cancelled.
Some of these observations included failure to follow a proper rating process, failure to exercise due diligence while providing ratings, failure to make correct disclosures in its press releases, and failure to address the issue of conflict of interest arising due to a rating committee member.
First Published: Jun 06 2023 | 3:33 PM IST