RBI says regulated bodies can't get fresh ratings from Brickwork Ratings

Sebi carried out a series of inspections against Brickwork, which obtained its licence as a CRA in 2008, starting April 2014, which led to multiple adjudication proceedings against the firm

Following the decision of the Securities and Exchange Board of India (Sebi) to cancel the certificate of Brickwork Ratings, the Reserve Bank of India has said that regulated entities cannot obtain any fresh ratings or evaluations from the agency.

The RBI’s advisory is applicable with immediate effect, the central bank said on Wednesday, adding that it will separately detail instructions regarding the prudential treatment of existing ratings issued by Brickwork Ratings.

On October 6, the Sebi cancelled Brickwork’s certificate of registration and directed the agency to wind down operations within six months. Brickwork counts state-owned lender Canara Bank as one