IL&FS case: SEBI expands probe into role of five credit rating agencies

Securities and Exchange Board of India (SEBI) expanded its probe into the role of five credit rating agencies after a forensic audit mandated by the new board of crisis-ridden Infrastructure Leasing and Financial Services (IL&FS) flagged serious lapses. They also addressed their possible complicity with the former top brass of the group in giving top ratings despite weak financials.

While CEOs of two rating agencies have een forced to go on leave pending completion of the probe on the advice of SEBI, officials said the regulator is now looking into possible systemic lapses at all five rating agencies. They also said that they are looking into the role of multiple people suspected to have intentionally manipulated the rating procedures.