The settlement order was issued by the Securities and Exchange Board of India (SEBI) on December 4.
This episode shows that the regulator is not shy of taking strict actions against errant intermediaries, but is willing to work together to improve processes.
Sebi has also issued directions to Brickwork Ratings to implement for past delays in complying with regulatory mandates on September 13.
Canara Bank, a Nationalized Bank with total business of over Rs. 600,000 crore, has invested in Brickwork Ratings, a Bengaluru based Credit Rating Agency. Canara Bank has picked up ten percent stake in Brickwork Ratings.
Brickwork Ratings has assigned the rating of ‘BWR A' with a stable outlook for the proposed NCD Issue of Peninsula Land (PLL) of Rs 200 Crores. Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
Brickwork Ratings (BWR) has revised the rating of Tulip Telecom's Rs 125 Crore Non-Convertible Debenture issue to BWR C from BWR BB- rating. Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
Brickwork Ratings (BWR) has revised the rating of Tulip Telecom‘s Rs 125 Crore Non-Convertible Debenture issue to BWR BB- from BWR BBB rating and continues the Ratings Watch with Negative Implications. Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
Brickwork Ratings has reaffirmed the rating of "BWR AAA" with a stable outlook for the ratings of Union Bank of India. The rating stands for an instrument that is considered to have the Highest degree of safety regarding timely serving of financial obligations. Such instruments carry lowest credit risk.