DHFL bid: CARE Ratings subsidiary on Sebi radar over Oaktree's bonds

A subsidiary of CARE Ratings is under the scanner of the Securities and Exchange Board of India (Sebi) for providing misleading information that Oaktree’s bonds to be issued to the Indian lenders for acquisition of Dewan Housing Finance Corporation (DHFL) are ‘AAA’-rated. 

A source close to the development said after receiving a letter from Ajay Piramal — another bidder of DHFL — Sebi sought clarifications from the rating firm to find out the rationale behind indicating the highest rating to Oaktree bonds. 

The markets regulator found it was a subsidiary of CARE which had rated the Oaktree acquisition proposal, not the bonds. 

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