Brickwork Ratings gets a breather from SAT, but can't onboard new clients
The Securities and Appellate Tribunal (SAT) on Friday granted interim relief to Brickwork Ratings, by staying the market regulator SEBI's order. Earlier, the Securities and Exchange Board of India had cancelled the credit rating agency's license for allegedly violating rules.
- Oct 14, 2022,
- Updated Oct 14, 2022 6:52 PM IST
The Securities and Appellate Tribunal (SAT) on Friday granted interim relief to Brickwork Ratings, by staying the market regulator SEBI's order. Earlier, the Securities and Exchange Board of India had cancelled the credit rating agency's license for allegedly violating rules.
The tribunal, today, put the cancellation on hold but maintained the market regulator's order, restricting the onboarding of any new client.
SEBI had said that multiple probes found violations, such as delay in recognition of default of non-convertible debentures and failure to review ratings, even after receiving information about delayed payments.
Subsequently, the Reserve Bank of India (RBI) directed entities falling under its regulations to immediately stop obtaining any new ratings from Brickwork Ratings India.
The regulated entities falling under RBI include banks, NBFCs, credit information bureaus, housing finance companies, among others.
Brickwork, in response, stated that "it is fully cooperating with the authorities to ensure all compliances are satisfactorily met."
The market regulator has been tightening disclosure rules for credit rating agencies since 2016 in a bid to boost transparency.
The Securities and Appellate Tribunal (SAT) on Friday granted interim relief to Brickwork Ratings, by staying the market regulator SEBI's order. Earlier, the Securities and Exchange Board of India had cancelled the credit rating agency's license for allegedly violating rules.
The tribunal, today, put the cancellation on hold but maintained the market regulator's order, restricting the onboarding of any new client.
SEBI had said that multiple probes found violations, such as delay in recognition of default of non-convertible debentures and failure to review ratings, even after receiving information about delayed payments.
Subsequently, the Reserve Bank of India (RBI) directed entities falling under its regulations to immediately stop obtaining any new ratings from Brickwork Ratings India.
The regulated entities falling under RBI include banks, NBFCs, credit information bureaus, housing finance companies, among others.
Brickwork, in response, stated that "it is fully cooperating with the authorities to ensure all compliances are satisfactorily met."
The market regulator has been tightening disclosure rules for credit rating agencies since 2016 in a bid to boost transparency.