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.
IL&FS: SEBI fines 3 rating agencies ₹25 lakh each
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