Friday, August 14, 2020
News

IL&FS: SAT says SEBI can enhance penalty on India Ratings

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | Tuesday, 2020 2:45:06 AM IST
The Securities Appellate Tribunal (SAT) has ruled that the SEBI has the power to initiate proceedings under Section 15-I(3) of the SEBI Act against India Ratings and Research Pvt Ltd and enhance the penalty on the rating agency for violating norms in granting credit rating to the crisis-ridden IL&FS.

A penalty of Rs 25 lakh was imposed on India Ratings in December 2019 for violating the Code of Conduct under the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 while granting credit rating to IL&FS for the financial year 2018-19.

After the order, the SEBI issued a second show cause notice dated January 28 by exercising powers under Section 15-I(3) of the SEBI Act directing the agency to show cause, why the penalty should not be enhanced as in their opinion the order was not in the interest of the securities market.

"Having heard the learned counsel for the parties at some length, we are prima facie of the opinion that SEBI has the power to initiate proceedings under Section 15-I(3) of the SEBI Act," said the SAT order.

The three member bench also directed the SEBI to file a reply within four weeks from the date of order (July 1) and three weeks thereafter is allowed to the appellant, India Ratings to file rejoinder.

In the meanwhile, the SAT directed India Ratings to deposit a sum of Rs 25 lakh pursuant to the impugned order dated December 26, 2019 before the respondent within four weeks which would be subject to the result of the appeal.

"We further direct that the proceedings in pursuance to the second show cause notice dated 28th January, 2020 will continue and the respondent (SEBI) will pass appropriate orders after giving an opportunity of hearing to the appellant either through physical hearing or through video conferencing but any order that is passed by the respondent shall not be given effect to during the pendency of this appeal," the order said.

The matter would be listed for admission and for final disposal on August 20, it said.

--IANS rrb/sn/vd

( 360 Words)

2020-07-06-20:37:54 (IANS)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
BLS International Services Ltd accredite...
Equities end flat; banking, healthcare s...
WeWork India offers more flexible option...
Godrej Industries logs Rs 106 cr consoli...
Faceless, seamless, painless I-T reform ...
Journal of the American College of Cardi...
More...
 
INDIA WORLD ASIA
IMD predicts heavy rain in Odisha; speci...
Covid-infected Amravati MP taken to Mumb...
RTI disposal rate remains unaffected by ...
ABVP seeks SAU re-conduct entrance test ...
1 killed, 5 injured in Mumbai building c...
Siddaramaiah didn't condemn attack on Co...
More...    
 
 Top Stories
WHO in conversation with Russia for... 
Trump blocks postal funds to preven... 
Ranveer Singh's music label aims to... 
COVID-19 re-infection not confirmed... 
58 MT of emergency humanitarian aid... 
Faceless, seamless, painless I-T re... 
Australia name 21-member squad for ... 
Assange will never have chance of f...