sebi:Order/AK/DS/2025-26/31350

SEBI · SEBI · 2023-01-06 · Amit Kapoor, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violations established against the Noticee on multiple counts; penalty quantum to be determined (order excerpt does not show final penalty)

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 28A

Regulations

• Reg. 13
• Reg. 16
• Reg. 15
• Reg. 19
• Reg. 24(2)

Parties

• Infomerics Valuation and Rating Private Limited

Holding

The Adjudicating Authority held that Infomerics Valuation and Rating Private Limited violated Clauses 2 and 12 of the Code of Conduct under the Third Schedule read with Regulation 13 of the CRA Regulations and Clauses 26.4.1.8 and 26.4.3.3 of the SEBI Operational/Master Circulars by publishing inaccurate CDR and ARTR (including unlisted securities in the static pool), and violated Clause 8 of the Code of Conduct read with Regulation 13 and Clauses 1(B) and 2(A)(III) of the June 30, 2017 circular by delaying material event review of ATS NCDs by 83 days.

Full text

Adjudication Order in the matter of Infomerics Valuation and Rating Private Limited Page 2 of 34 Sr. No. Alleged Violations (Summarized) Regulatory Provisions 1 Discrepancy in disclosure of Cumulative Default Rates (‘CDRs’) and average rating transition rate for listed and proposed to be listed securities  Clauses 2, 4 and 12 of Code of Conduct under third Schedule read with Regulation 13 of CRA Regulations  Clause 26.4.1.8 and 26.4.3.3 of SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2023/6 dated January 06, 2023 titled ‘Operational Circular for Credit Rating Agencies’/ Clause 26.4.1.8 and 26.4.3.3 of SEBI Master Circular No. SEBI/HO/DDHS/DDHS- POD2/P/CIR/2023/111 dated July 03, 2023 titled ‘Master Circular for Credit Rating Agencies’ 2 Delay in review of rating in case of Material Event  Clause 8 of Code of Conduct under third Schedule read with Regulation 13 of CRA Regulations.  Clause 1(B) and Clause 2(A)(III) of SEBI Circular No. SEBI/HO/MIRSD/MIRSD4/CIR/P/2017/71 dated June 30, 2017 titled ‘Monitoring and Review of Ratings by Credit Rating Agencies (CRAs)’ 3 Failure to monitor debt servicing and Delay in recognition of default  Clause 8 of Code of Conduct under third Schedule read with Regulation 13 of CRA Regulations.  Regulation 24(2) and 24(7) of CRA Regulations  Clause 1(A)(I), Clause 1(A)(II) and Clause 2(A)(III) of SEBI Circular No. SEBI/HO/MIRSD/MIRSD4/CIR/P/ 2017/71 dated June 30, 2017 titled ‘Monitoring and Review of Ratings by Credit Rating Agencies

Adjudication Order in the matter of Infomerics Valuation and Rating Private Limited Page 3 of 34 Sr. No. Alleged Violations (Summarized) Regulatory Provisions 2016/119 dated November 01, 2016 titled ‘Enhanced Standards for Credit Rating Agencies (CRAs)’.  Clause 7.5.1 read with Annexure 11 of SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2023/6 dated January 06, 2023 titled ‘Operational Circular for Credit Rating Agencies’  Clause 9.1.1, 9.1.3 and 27.3.4 of SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2023/6 dated January 06, 2023 titled ‘Operational Circular for Credit Rating Agencies’.

Adjudication Order in the matter of Infomerics Valuation and Rating Private Limited Page 4 of 34 SHOW CAUSE NOTICE, REPLY OF THE NOTICEE AND HEARING

Source: SecMarx — sebi:Order/AK/DS/2025-26/31350. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.