Brickwork's ratings lack transparency, riddled with inaccuracies: Sebi

With the apex regulatory body's move on Brickwork Ratings being seen as one of the toughest regulatory actions against any credit rating firm

The Securities and Exchange Board of India’s (Sebi) decision on Thursday to wind down credit rating agency (CRA) Brickwork, is thanks to the firm’s serious violations of its regulatory framework for CRAs, according to the regulator’s official order. Such violations include a failure to document meetings with the management, lack of independent analysis of financial projections given by companies, delays in recognising defaults, as well as conflict of interest, the regulator said.

The Sebi regulations on CRAs were brought to force on July 7, 1999, and include detailed guidelines on the registration procedure, general requirements by CRAs, and grounds for