Brickwork Ratings said it is considering “reasonable legal recourse”, a day after capital markets regulator Sebi directed the credit rating firm to cease operations within six months, citing repeated defaults and violations. Gave.
Rating agency expressed disappointment over SEBI’s decision. ,brickwork rating Is cooperating fully with the authorities to ensure that all compliances are met satisfactorily. In parallel, the company is also considering taking appropriate legal recourse in the matter.”
In a rare order on Thursday, the Securities and Exchange Board of India (SEBI) canceled the registration certificate of Brickworks, highlighting several breaches by the rating agency.
The market regulator also restrained the rating agency from taking on new clients, saying that several investigations found violations such as delay in recognition of default of non-convertible debentures and rating even after receiving information about delayed payments. Failure to review.
‘Allegations, shocking developments’
Under such circumstances, Brickwork Ratings said it considers the recent allegations a shocking development.
“Brickwork Ratings considers the recent allegations a shocking development,” it said in a statement late Friday, adding that it took “timely course correction measures” in line with regulatory directives.
According to the statement, the suggestions of SEBI as per prior inspections have always been taken in the right spirit and the company has implemented robust software development to address certain issues.
“In addition, timely course correction measures have been taken to align with regulatory directives and industry best practices. Brickwork Ratings always strives to ensure compliance with the highest standards in its rating practices with robust internal checks and balances ,” it added.
The regulator has said that it has investigated Brickworks on several occasions and conducted a joint inspection with India’s central bank.
SEBI has been tightening disclosure norms for credit rating agencies since 2016 to promote transparency and accountability in the aftermath of several sudden changes in corporate ratings.
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