Brickwork Ratings settles matter with mkt regulator Sebi for Rs 1.54 crore

Brickwork Ratings has arrived at a settlement with markets regulator Securities and Exchange Board of India (Sebi) under which it has paid Rs 1.54 crore in connection with a case pertaining to alleged violations of norms for credit rating agencies.

 

In January 2020, Sebi and the Reserve Bank of India had undertaken a joint inspection of Brickwork, where the two regulators found “several irregularities”. Following this, Sebi issued an administrative warning and directed it to rectify the discrepancies and take corrective measures.

 

Two years later, in 2022, Sebi cancelled the licence of Brickwork and directed the credit rating agency to wind down operations within six months for alleged violations in the rating process, due diligence, reporting of conflict of interest, and correct disclosures.

 

However, in 2023, the Securities Appellate Tribunal (SAT) set aside the cancellation and sent the case back to Sebi for further penalty or directions.

 

The tribunal upheld some violations by Brickwork, and Sebi issued a show-cause notice to the agency in December 2023. With this settlement, the proceedings initiated against Brickwork Ratings stand disposed of, the regulator said.