Care Ratings appoints Ajay Mahajan MD, chief executive

Domestic rater Care Ratings on Wednesday announced the appointment of Ajay Mahajan as its managing director and chief executive.

The appointment of Mahajan, who joins the company from private lender IDFC First Bank, comes nearly eight months after Care Ratings' then head Rajesh Mokashi was sent on a compulsory leave by capital markets regulator Sebi which was followed by his resignation in December 2020.

The agency, along with rival Icra Ratings, had reportedly been under regulatory scanner for their calls in the IL&FS case, wherein the infra lender was found to be enjoying very high ratings before going down suddenly.

The IL&FS episode had also led Sebi to do a comprehensive review of the rules governing rating agencies.

In a statement, Care Ratings said T N Arun Kumar, it's Interim - CEO, will revert to his previous position of Chief Ratings Officer.

Mahajan's appointment was ratified by the Board of Directors at its meeting on Wednesday, based on the recommendation of the Nomination and Remuneration Committee.

It is for a period of five years commencing from April 15, 2020, the statement said.

Mahajan has had stints with Bank of America, where he worked as the country head of the global markets group and also led an initiative to start an NBFC there, before moving on to Yes Bank and finally, IDFC, which converted into a universal bank later.