Brickwork, set up by banking and former credit rating agency professionals, is one of the seven such agencies registered with SEBI.
One of the allegations against the rating agencies was that they did not respond to risk building and overleveraging in the company.
The regulator had earlier pulled up Brickwork for delay in recognizing the default of non-convertible debentures (NCDs) of Bhushan Steel,
SEBI also found irregularities in the ratings of the company's Welspun, IDFC First and Adani Rail
After this, SEBI issued a show cause notice in November 2020 as to why action should not be taken under the rules of intermediaries.
issued a show cause notice in November 2020 as to why action should not be taken under the rules of intermediaries.
Last month, the Supreme Court lifted the stay granted by the High Court, following which the Karnataka HC dismissed the writ petition. Filed by Brickworks.
Brickworks could not be contacted for comment
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