- Tuesday, May 21, 2024
By: Shubham Ghosh
India’s Brickwork Ratings has said that it is considering “appropriate legal recourse” after the country’s market regulator sought the credit rating firm to wind down operations in a period of six months over alleged lapses and violations on a repeated basis, Reuters reported.
In a rare order, the Securities and Exchange Board of India (SEBI) on Thursday (6) cancelled Brickwork’s registration certificate and barred it from taking on new business. It said multiple investigations found violations such as delay in recognition of default of non-convertible debentures, and failure to review ratings despite receiving information about delayed payments.
“Brickwork Ratings finds the recent allegations to be a shocking development,” it said in a statement on Friday, adding it had taken “timely course correction measures” in line with regulatory instructions, the Reuters report added.
The rating agency “is fully cooperating with the authorities to ensure all compliances are satisfactorily met. In parallel, the company is also considering appropriate legal recourse in the matter,” it said.
