Sebi has asked India Ratings and Research to pay a fine of Rs 3 lakh. An inspection by Sebi and the RBI resulted in the fine.
India Ratings and Research was fined Rs 3 lakh by Sebi for lapses in compliance with the regulator’s circular.
Sebi and the Reserve Bank of India inspectorated the firm from August 22 to 29, 2022, covering August 1, 2021, to June 30, 2022.
Sebi ordered the company to comply with the regulator’s circular after inspections found two violations.
Sebi imposed the Rs 3 lakh fine after considering mitigating factors, including that issuers and debenture trustees did not notify the rating agency of NCD (Non Convertible Debentures) payment delays or defaults, investors were institutional investors, and they were adequately informed about the risks.
Sebi claims the rating agency delayed recognizing Altico Capital India’s default and Hindustan Cleanenergy Ltd.’s material event.
Conclusion
Sebi fined India Ratings and Research Rs 3 lakh for two circular violations. The entity violated two requirements during the Sebi and Reserve Bank of India assessment. Several mitigating circumstances led to the penalties, including issuers and debenture trustees not telling the rating agency about NCD delays or defaults. Altico Capital India and Hindustan Cleanenergy Ltd. also delayed default and material event recognition, according to Sebi.
