Sebi bans ex-CEO of Care Ratings for 2 yrs for violating securities law

India's market regulator on Thursday barred the former chief executive of Care Ratings Ltd from the securities market for two years for violation of rules.

The Securities and Exchange Board of India (SEBI), in its order, said that Rajesh Mokashi, the former managing director and chief executive of Care, interfered in the rating committee decision while it rated instruments issued by Yes Bank, Dewan Housing and Finance Ltd, now known as Piramal Capital and Housing Finance Ltd, and Infrastructure and Financial Services Ltd, a unit of Infrastructure Leasing & Financial Services Ltd.

The regulator said that Mokashi was only "paying performative obeisance" to the regulatory mandate by not being part of the rating committees but was still interfering in rating decisions. The law does not permit the management of a rating firm to be part of the rating committee.

Mokashi cannot be a part of any market intermediary for two years, SEBI ruled.