The Securities and Exchange Board of India (SEBI) has penalized rating agencies India Ratings & Research, CARE and ICRA for alleged lack of proper due diligence while rating non-convertible debentures of crisis-hit IL&FS. In three separate orders, the SEBI imposed a penalty of ₹25 lakh each on them. The SEBI probe has alleged the agencies placed excessive reliance on the submissions made by the IL&FS management while failing to change the rating or placing it under ‘watch’ even as there were reports related to the slow pace of asset monetization and deleveraging of the group.
