India’s Brickwork Ratings mulls “legal recourse” after shutdown order

India’s Brickwork Ratings mentioned it’s contemplating “appropriate legal recourse” after the nation’s market regulator ordered the credit standing agency to wind down operations inside six months, citing repeated lapses and violations.

The Securities and Exchange Board of India (SEBI) in a uncommon order on Thursday cancelled Brickwork’s registration certificates and prevented it from taking over new enterprise, saying a number of probes discovered violations similar to delay in recognition of default of non-convertible debentures and failure to assessment rankings even after receiving details about delayed funds.

“Brickwork Ratings finds the recent allegations to be a shocking development,” it mentioned in an announcement late on Friday, including it had taken “timely course correction measures” according to regulatory directions.

The score company “is fully cooperating with the authorities to ensure all compliances are satisfactorily met. In parallel, the company is also considering appropriate legal recourse in the matter,” it mentioned.

SEBI didn’t instantly reply to a request for remark outdoors enterprise hours.

The regulator has mentioned it investigated Brickworks on a number of events and had undertaken a joint inspection with the India’s central financial institution.

SEBI has been tightening disclosure guidelines for credit standing businesses since 2016 in a bid to spice up transparency and accountability after a variety of sudden sharp adjustments to company rankings.