CARE Ratings’ subsidiary fined by Nepal’s market regulator

A Nepal-based subsidiary of CARE Ratings Limited has been fined by the Securities Board of Nepal for deviating from the provisions under the country's regulations for credit rating agencies. These provisions restrict the agency from conducting credit ratings for its major shareholders or any company with founder shareholders.

CARE Ratings informed through an exchange filing that the impact of the order had "no significant effect" on its financial, operational, or other activities when quantified in monetary terms to the extent possible.

The filing stated that a subsidiary of the company, CARE Ratings Nepal Limited (CRNL), received a letter dated September 21, 2023, from the Securities Board of Nepal imposing a fine on CRNL. CRNL received the letter on September 22, 2023.

The filing further elaborated on the nature and details of the action taken or orders passed, saying, "Securities Board of Nepal, through its letter dated 21st September, 2023 (received on 22nd September, 2023), has imposed a fine of INR 31,250/- on CARE Ratings Nepal Limited based on its observation of deviation from the provisions of sub-rule (2) of Rule 34 of Credit Rating Regulations, 2068, Nepal."