CARE Ratings drops 8% as Chairman Mainak steps down after forensic probe

CARE Ratings slipped nearly 8 per cent on Thursday, after reports suggested that S B Mainak, chairman, CARE Ratings has tendered his resignation.

Market regulator Securities and Exchange Board of India (Sebi) is said to have nudged the rating agency to remove Mainak after adverse findings against him in a forensic report. 

“Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please be informed that due to personal reasons Shri. S B Mainak, Chairman & Independent Director of the Company has tendered his resignation with effect from February 11, 2020,” the company said in a regulatory filing to the BSE. READ IT HERE

This is the second setback for the rating agency in as many months. Earlier in December 2019, the company’s managing director and chief executive officer (MD & CEO) Rajesh Mokashi had stepped down following whistle blower complaint alleging management interference in ratings of certain companies, including IL&FS. MORE INFO HERE

At 10:10am, the stock was trading 7.5 per cent lower at Rs 538 levels on the BSE. In comparison, the S&P BSE Sensex was trading 0.3 per cent lower at 41,456 levels.