Brickwork Ratings Resolves SEBI Case with ₹1.54 Crore Settlement

Brickwork Ratings India Pvt Ltd is a credit rating agency based in India that assesses the creditworthiness of various entities, such as corporations, financial institutions, state and local governments, as well as other public sector organisations.

Brickwork Ratings Reached a Settlement with SEBI for ₹1.54 Crore

Brickwork Ratings has reached a settlement of ₹1.54 crore with the Securities and Exchange Board of India (SEBI), the market regulator, concerning a case involving purported breaches of regulations governing credit rating agencies.

In January 2020, a joint inspection was carried out by SEBI and the Reserve Bank of India at Brickwork, during which both regulators identified “numerous irregularities.” Consequently, SEBI issued an administrative warning, instructing the company to address the discrepancies and implement corrective actions.

SEBI Cancelled the Licence of Brickwork in 2022

In 2022, two years later, after an investigation, SEBI revoked Brickwork’s licence and instructed the credit rating agency to cease operations within six months due to purported breaches in the rating process, due diligence, conflict of interest reporting, and proper disclosures. 

However, in 2023, the Securities Appellate Tribunal (SAT) overturned this cancellation and returned the case to SEBI for further penalties or instructions. The tribunal acknowledged certain violations by Brickwork, prompting SEBI to issue a show-cause notice to the agency in December 2023. The regulator stated that, with this settlement, the proceedings against Brickwork Ratings have been resolved.

About Credit Rating Agencies (CRA)

Credit ratings offer both retail and institutional investors insights that help ascertain if issuers of bonds, debt instruments, and fixed-income securities will fulfil their commitments. Credit rating agencies (CRAs) employ letter grades to provide analyses and impartial evaluations of companies and nations that issue debt securities.

About Brickwork Ratings India Pvt Ltd

Brickwork Ratings India Pvt Ltd is an Indian credit rating agency (CRA) that assesses the creditworthiness of various entities, such as corporations, financial institutions, state and municipal governments, as well as other public sector organisations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.