February 13, 2020

CARE Ratings Chief Resigns After SEBI Asks For His Removal

[ By Bobby Anthony ]


CARE Ratings Chairman S B Mainak has resigned according to a company notifications to stock exchanges after the Securities & Exchange Board of India (SEBI) asked for his removal after his alleged role in the IL&FS affair.

Earlier, the SEBI had asked CARE to sack its chairman after a forensic report revealed that Mainak had asked his staff to not change the ratings of Infrastructure Leasing and Financial Services (IL&FS).

Recently, consultancy firm EY gave the SEBI a report recording employee statements, WhatsApp messages and call recordings of CARE employees.

Mainak was an independent director and chairman of CARE Ratings. In December 2019, CARE’s managing director and chief executive officer (MD & CEO) Rajesh Mokashi resigned after a whistleblower complaint alleged management interference in ratings of companies, including that of IL&FS.

In August 2019, Moody’s India arm ICRA sacked its MD & CEO Naresh Takkar after whistleblower allegations.

In December 2019, the SEBU had fined CARE, ICRA and India Ratings Rs 25 lakh each for violating regulations while assigning ratings to non-convertible debentures (NCDs) of IL&FS.

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