Brickwork Ratings has agreed to pay Rs 1.54 crore to settle allegations of violating SEBI’s Credit Rating Agencies (CRA) Regulations. The Securities and Exchange Board of India (SEBI) announced the settlement on December 4.
SEBI inspected Brickwork Ratings covering December 1, 2019, to January 21, 2022. The inspection aimed to evaluate the agency’s compliance with regulatory norms. Following the inspection, SEBI initiated an enquiry, appointing a Designated Authority to investigate alleged violations.
Allegations included violations in several of its CRA regulations, and different orders of SEBI in regards to governance, rating independence and preservation with SEBI’s Code of Conduct for CRAs. Noticeably the Lim report submitted on November 17, 2023 itself recommended suspension of Brickwork Ratings’ registration. Thus show cause notice to the entity was issued by SEBI on December 22 2023 “as to why the proposed action should not be taken”.
The matter was resolved when Brickwork Ratings proposed a settlement. SEBI’s Internal Committee reviewed the proposed settlement and recommended a sum of Rs 1.54 crore, which the agency has paid, and hence, the case is closed.
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Source: Moneycontrol
News Desk
