SEBI: Brickwork Ratings India Accused Of Violating Rules, License Canceled

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SEBI: Brickwork Ratings India Accused Of Violating Rules, License Canceled
07 Oct 2022
6 min read

News Synopsis

The Securities and Exchange Board of India (SEBI) on Thursday canceled the license of Brickwork Ratings, prohibited it from taking up new clients, and directed it to wind up operations in six months, in the toughest regulatory action against any credit rating firm.  Not only this, but SEBI has also directed the credit rating agency Brickwork Ratings India to wind up its entire business from India within six months. Also, SEBI has also said that the agency will no longer create any new clients in India. It is alleged that Brickwork Ratings India has committed several violations of the regulator. It is because of these that SEBI has taken this action.

On Thursday, the Securities and Exchange Board of India (SEBI) published its directives. In this, SEBI has said that Brickwork has committed various violations. Brickwork did not follow a proper rating process, as well as the agency, did not conduct any investigations when it issued ratings to its clients. Along with this, the agency also did not ensure compliance with the timelines under its internal rules.

SEBI said that Brickwork also delayed in providing information regarding the monitoring of ratings. SEBI, in its order, has said that Brickworks has failed to complete the due diligence in the discharge of its obligations as a credit rating agency. This did not serve the purpose of investor protection and orderly development of the securities market. Giving information about the action, Sebi Whole Time Member Ashwini Bhatia said that strict action was required in this matter. 

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