Brickwork Ratings says Sebi’s order shocking, legal action might be on cards
In its reply, Brickwork said that the company is fully cooperating with the authorities to ensure all compliances are satisfactorily met.
- Oct 8, 2022,
- Updated Oct 8, 2022 1:41 PM IST
Rating agency Brickwork Ratings on Saturday said that the Securities and Exchange Board of India’s (SEBI) winding up order has come as shock to the company and it is contemplating legal recourses against the regulator's action.
On October 6, the market regulator issued an order to Brickwork Ratings asking them close its operations within six months from the date the note was issued. SEBI stated that the credit rating agency has “failed to exercise proper skill, care, and diligence" while discharging duties as a credit rating agency.
As per reports, SEBI cancelled Brickwork’s licence after conducting detail probes along with the Reserve Bank of India (RBI). It has also barred Brickwork from taking new clients.
In its reply, Brickwork added: “Brickwork Ratings is fully cooperating with the authorities to ensure all compliances are satisfactorily met. In parallel, the company is also considering appropriate legal recourse in the matter.”
Brickwork is one of the SEBI-registered credit rating agencies in India. The others are Crisil, Care, Icra, Fitch, Infomerics Ratings, and Acuité Ratings & Research. Brickwork provides various rating services and products across capital market instruments and bank loans for the corporate sector, financial sector, infrastructure sector, insurance sector, public sector undertakings, state government, municipal and urban local bodies, among others.
Recently, Sebi issued a new framework for credit rating agencies (CRAs), involving ratings of securities having explicit credit enhancement features. The new framework, which is applicable from January 1, 2023, is aimed at enhancing transparency and improving the rating process.
Rating agency Brickwork Ratings on Saturday said that the Securities and Exchange Board of India’s (SEBI) winding up order has come as shock to the company and it is contemplating legal recourses against the regulator's action.
On October 6, the market regulator issued an order to Brickwork Ratings asking them close its operations within six months from the date the note was issued. SEBI stated that the credit rating agency has “failed to exercise proper skill, care, and diligence" while discharging duties as a credit rating agency.
As per reports, SEBI cancelled Brickwork’s licence after conducting detail probes along with the Reserve Bank of India (RBI). It has also barred Brickwork from taking new clients.
In its reply, Brickwork added: “Brickwork Ratings is fully cooperating with the authorities to ensure all compliances are satisfactorily met. In parallel, the company is also considering appropriate legal recourse in the matter.”
Brickwork is one of the SEBI-registered credit rating agencies in India. The others are Crisil, Care, Icra, Fitch, Infomerics Ratings, and Acuité Ratings & Research. Brickwork provides various rating services and products across capital market instruments and bank loans for the corporate sector, financial sector, infrastructure sector, insurance sector, public sector undertakings, state government, municipal and urban local bodies, among others.
Recently, Sebi issued a new framework for credit rating agencies (CRAs), involving ratings of securities having explicit credit enhancement features. The new framework, which is applicable from January 1, 2023, is aimed at enhancing transparency and improving the rating process.