IL&FS case: SAT refuses to stay Sebi proceedings in 2nd show-cause notice against Ind-Ra
The Securities and Appellate Tribunal (SAT) has refused to stay the proceedings initiated by Sebi seeking to impose a higher penalty on India Ratings in the IL&FS matter.
Regarding an appeal against Sebi order imposing Rs 25 lakh penalty on India Ratings, the tribunal directed the rating agency to deposit the amount with the regulator within four weeks, which would be subject to the result of the appeal.
In the IL&FS fiasco, the markets regulator had penalised three rating agencies, including India Ratings, for lapses in assigning credit ratings to non-convertible debentures of IL&FS, which had defaulted on repayments.
After imposing a fine of Rs 25 lakh in December 2019, the watchdog issued a second show-cause notice on January 28, 2020 asking India Ratings “to show cause as to why penalty should not be enhanced”.
