sebi:WTM/ASB/MIRSD/MIRSD_CRADT/20175/2022-23
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Facts / Headnote
Certificate of Registration as a Credit Rating Agency cancelled
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 13
- Reg. 26(1)
- Reg. 15
- Reg. 29
- Reg. 27
- Reg. 21
- Reg. 24(7)
- Reg. 5(2)
- Reg. 15(2)
- Reg. 25
- Reg. 24(2)
- Reg. 24(1)
- Reg. 5(5)
Parties
- Brickwork Ratings India Pvt. Ltd.
Holding
SEBI's Whole Time Member found that Brickwork Ratings India Pvt. Ltd. violated the CRA Regulations and SEBI Circulars by failing to follow proper rating process, maintain records, comply with timelines, and address conflict of interest, and accordingly cancelled its Certificate of Registration as a Credit Rating Agency.
Full text
__________________________________________________________________________________________ Order in the matter of Inspection of Brickwork Ratings India Pvt. Ltd. 1 / 51 WTM/ASB/MIRSD/MIRSD_CRADT/20175/2022-23
__________________________________________________________________________________________ Order in the matter of Inspection of Brickwork Ratings India Pvt. Ltd. 2 / 51 iii. Incorrect disclosures in respect to compliance with the provisions of the IOSCO Code of Conduct stating “The Credit Rating Agency (“CRA”) should not have employees who are directly involved in the rating process initiate, or participate in, discussions regarding fees or payments with any entity they rate.”
__________________________________________________________________________________________ Order in the matter of Inspection of Brickwork Ratings India Pvt. Ltd. 3 / 51 SAT had upheld the findings of the AO in respect of the violations mentioned at paragraphs 1.3.C.ii and iii (partly upheld). The Hon’ble SAT partly allowed the Appeal and reduced the monetary penalty to ₹10 Lakh.
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Source: SecMarx — sebi:WTM/ASB/MIRSD/MIRSD_CRADT/20175/2022-23. 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.