Brickwork Ratings said it was considering “appropriate legal action”, a day after capital market regulator SEBI ordered the ratings firm to wind down operations within six months, citing repeated outages and violations. The rating agency expressed disappointment over Sebi’s decision. “Brickwork Ratings is fully cooperating with the authorities to ensure that all requirements are satisfactorily met. The company is also considering appropriate legal action in this matter,” it said in a statement.
In a rare order on Thursday, the Securities and Exchange Board of India (SEBI) revoked Brickwork’s registration certificate and flagged several violations by the rating agency. The market regulator also barred the credit rating agency from accepting new clients, saying numerous probes had found violations such as delays in recognizing defaults on non-convertible bonds and failure to check credit ratings even after receiving information about late payments.
“Allegations, shocking developments” Under such circumstances, Brickwork Ratings said it considers the recent allegations a shocking development. Brickwork Ratings considers the recent allegations a shocking development,” it said in a statement late Friday, adding that it had taken “timely course correction measures” in accordance with regulatory guidance. According to the statement, Sebi’s proposals based on previous inspections had always been taken in the right spirit and that the company had implemented robust software development to address some of the issues.
“Furthermore, timely course correction measures have been taken to comply with regulatory guidelines and industry best practices. Brickwork Ratings has always endeavored to ensure compliance with the highest standards in its rating procedures through rigorous internal checks and balances,” he added. SEBI has been tightening disclosure rules for credit rating agencies since 2016 in a bid to increase transparency and accountability after a series of sudden, drastic changes. on corporate ratings.
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