Crisil settles case with Sebi, pays Rs 28 lakh

Crisil today settled with markets regulator Sebi a probe into alleged violations of regulation pertaining to credit rating agency after paying over Rs 28 lakh.
Sebi agreed to settle proposed adjudication proceedings in the case, pertaining to violation of the CRA (credit rating agency) norms, after it was approached by Crisil with a plea under the settlement regulations "without admitting or denying the findings of fact and conclusion of law".
In a settlement order passed today, Sebi said it has disposed of the "adjudication proceedings initiated against the applicant -- Crisil Ltd".
It was alleged that the "applicant, a registered credit rating agency under CRA Regulations, had violated the provisions... of the code of conduct as stipulated in ...the CRA Regulations".

Further, it was also alleged that Crisil had violated several provisions under the CRA norms.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceeding against Crisil. Pending adjudication proceedings, the rating agency had approached Sebi in November 2016 to settle the case on payment settlement charges.

Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of Rs 28.37 lakh. This was also approved by the regulator's panel of whole-time members, following which it remitted the amount.
Accordingly, the regulator has disposed of the adjudication proceedings initiated against the rating agency.
It further said that enforcement actions, including including restoring or initiating the proceedings, could be initiated if any representation made by the rating agency is found to be untrue.