Sebi initiates proceedings against Icra over rating given to client

Rating agency Icra on Thursday said market regulator Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against the company over rating assigned to a client.

Icra did not disclose the name of the client. The rating agency also said that its board had appointed external experts to look into an "anonymous representation" forwarded to the company by the market regulator.

The company said it had made provisions in light of these two issues. 

“Based on the work done till date, the company has made provision on a prudent basis with regards to the adjudication proceedings, while, apropos the representation, no findings have yet been identified. The company will consider the implications, if any, in due course, upon completion of these matters,” said Icra in a filing to BSE. 

According to reports, Sebi has initiated action three rating agencies, including Icra, for their role in the IL&FS crsis.

An email sent to Icra seeking more clarity on the disclosures wasn’t answered.