The Securities and Exchange Board of India (SEBI) on October 6 cancelled the recognition certificate granted to Brickwork Ratings India, one of the seven registered credit rating agencies (CRAs) in the country, for “repeated lapses” and irregularities in “discharging its duties”.
Key points
- The SEBI directed Brickwork to wind down its operations within six months and intimate its clients about the same.
- During this period, Brickwork cannot onboard any new clients or take fresh mandates.
- Recently, the Supreme Court has allowed Sebi to conclude the proceedings for cancellation of Brickwork Ratings’ licence for allegedly violating various credit rating regulations.
- This is for the first time that Sebi has cancelled the license of a credit rating agency (CRA).
- Brickwork was granted registration by SEBI in the year 2008.
Credit rating agencies in India
- Brickwork is one of the seven Sebi-registered credit rating agencies operating in the country.
- The other six agencies are: Acuite Ratings & Research Ltd, Crisil Ratings Ltd, Icra Ltd, Care Ratings Ltd, India Ratings and Research Ltd, Infomerics Valuation and Ratings Ltd.
