SAT backs Sebi's fresh show-cause notices to rating agencies in IL&FS case

Some rating agencies moved the tribunal seeking a stay on the second show-cause notices issued by Sebi in January 2020

The Securities Appellate Tribunal (SAT) has held that the Securities and Exchange Board of India (Sebi) has the power to issue a second set of show-cause notices to rating agencies in the IL&FS matter. It also said the “proceedings in pursuance to the second show-cause would continue”. 

In January 2020, Sebi had issued a second set of show-cause notices seeking an explanation as to why the penalty should not be enhanced.

Some rating agencies had moved the tribunal, seeking a stay on another set of show-cause notices issued by Sebi in January 2020.

"Having heard the learned counsel for the parties at some