IL&FS case: Sebi imposes Rs 25 lakh fine on rating agencies ICRA, CARE

The regulator has given 45 days for the payment of penalty, which was levied under Section 15HB of the Sebi Act.

The Securities and Exchange Board of India (Sebi) has slapped a penalty of ~25 lakh each on credit rating agencies CARE and ICRA for violation of the Sebi (Credit Rating Agencies) Regulations pertaining to assigning of rating to various non-convertible debentures (NCDs) of IL&FS.

In its order, Sebi said the rating agencies had failed to exercise their duty to investors at large and did not downgrade the ratings of NCDs of IL&FS in time despite having knowledge of the deteriorating financials of the issuer. The regulator has given 45 days for the payment of penalty, which was levied under Section