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India’s Market Regulator Orders Ratings Agency to Shut Down

  • Domestic raters have faced scrutiny in the past few years
  • Brickwork can appeal to securities tribunal, top court: lawyer
A worker cleans the glass of the Securities & Exchange Board of India in Mumbai.

A worker cleans the glass of the Securities & Exchange Board of India in Mumbai.

Photographer: Adeel Halim/Bloomberg
Corrected

The Securities & Exchange Board of India canceled the license of credit assessor Brickwork Ratings and ordered it to shut down in six months for lapses in its rating process. 

On Thursday, a SEBI order asked Brickworks to also inform its existing clients of closure of operations and barred it from taking on any new mandates. The markets regulator found lapses at Brickwork during inspections, including failure to make proper disclosures, addressing conflicts of interest and not properly maintaining records to support its ratings decisions.