Shares of ICRA, the Indian arm of global rating agency Moody's, declined around 5 per cent on the BSE in the intra-day trade on Friday after the company terminated its Managing Director (MD) and Group Chief Executive Officer (CEO) Naresh Takkar’s employment. The rating agency has attributed the unprecedented move to protect interests of the company and its shareholders.
According to the company, “ICRA remains committed to ensuring independence and integrity of its ratings process and sound corporate governance.”
Takkar had been on indefinite leave since July pending an inquiry by the Securities and Exchange Board of India (Sebi) after a whistle-blower alleged interference by top executives of the rating agency in issuing good ratings to Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries.
Without disclosing reasons, ICRA informed the stock exchanges on Thursday, “The board, after due consideration and taking into account the best interests of the company and its various stakeholders, has decided to terminate the employment of Takkar with immediate effect.” READ MORE
The ICRA board said it would commence a search for Takkar’s replacement, adding that Vipul Agarwal, who was named interim chief operating officer on July 1, 2019, remains responsible for the day-to-day operations of the firm until a CEO is appointed.
Global rating agency Moody’s owns 51.87 per cent in ICRA.
At 1:26 pm, the stock was trading at Rs 2,691 apiece on the BSE, down around 4 per cent. During the session, the stock hit an intra-day low and high of Rs 2,661.10 and Rs 2,739.85, repectively. A total of 23.03 lakh shares changed hands on the BSE and NSE till the time of writing this report.
In comparison, the benchmark S&P BSE Sensex was trading at 36,957, down 112 points or 0.30 per cent.