 "SEBI")
Markets regulator Sebi has slapped a penalty of Rs 3 lakh on India Ratings and Research for certain lapses.
Sebi and the Reserve Bank of India conducted a joint inspection of the entity from August 22 to 29, 2022, and the period covered under the inspection was from August 1, 2021, to June 30, 2022.
In its order, Sebi said the inspection findings brought out two instances where the entity was not complying with the requirements of the regulator's circular.
The Securities and Exchange Board of India (Sebi) imposed the fine of Rs 3 lakh after taking into various mitigating factors, including that issuers and debenture trustees did not inform the rating agency about delay/ default on the payment of the NCDs (Non Convertible Debentures), investors were institutional investors and were adequately informed about the risks involved in the NCDs.
According to Sebi, there was a delay by the rating agency in recognition of a default done by Altico Capital India, and another instance was the delay in recognition of a material event in the case of Hindustan Cleanenergy Ltd.
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