CARE Ratings stock dips by 8 pc after Chairman Mainak resigns

ANI
13 Feb 2020, 18:37 GMT+10

Mumbai (Maharashtra) [India], Feb 13 (ANI): The share price of CARE Ratings plunged by over 8 per cent on Thursday afternoon after the agency said its Chairman S B Mainak has resigned after stock market regulator Securities and Exchange Board of India (SEBI) reportedly asked for his removal.

Rating agencies have come under severe criticism for missing warning signs like Infrastructure Leasing and Financial Services (ILFS) rocketing debt load beyond normal levels.

The default of infrastructure financier reverberated the country's credit markets and triggered a liquidity crisis which has crippled non-banking finance companies.

SEBI nudged the rating agency after a forensic report said Mainak had asked his staff to not change the ratings of ILFS, the bankrupt shadow banker.

Consultancy firm ErnstYoung (EY) had earlier given SEBI a report recording employee statements, WhatsApp messages and call recordings of CARE employees.

In December 2019, CARE's Managing Director and Chief Executive Officer Rajesh Mokashi resigned after a whistleblower complaint alleged management interference in ratings of companies, including ILFS.

He was sent on leave in July till further notice after an anonymous complaint was filed against him at the SEBI.

In August last year, Moody's India arm ICRA sacked its Managing Director and Chief Executive Officer Naresh Takkar after whistleblower allegations.

At 12.45 pm, the agency stock was trading 8.26 pc lower at Rs 533.40(ANI)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Leeds Times.

More Information

7 ℃

Light Rain / Windy in Leeds

Europe

Section

More Than 1,000 US military Veterans Condemn Trump Over Vindman Firing

A group of more than 1,100 U.S. military veterans from all five branches have signed a statement lashing out at ...

International court overturns appeal, Yukos shareholders win billions

MOSCOW, Russia - An international appeals court in the Netherlands has ordered Russia to pay $50 billion in compensation to ...

Trump Cleaning House, Teasing New Leadership for Top Intel Agency

WASHINGTON - The White House will start with a clean slate as it works to reshape the leadership of the ...

Avalanche G Francouz signs two-year deal

Colorado Avalanche goaltender Pavel Francouz has signed a two-year contract through the 2021-22 season, the team announced Friday. Financial terms ...

UN chief appeals for end to Syria's man-made humanitarian nightmare

"The message is clear. There is no military solution for the Syrian crisis,"Antonio Guterres said, addressing journalists at UN Headquarters ...

Platini considers return to football after ban

London - Michel Platini revealed on Friday he is considering a return to football as the former UEFA president bids ...

International

Section