SEBI orders closure of Bengaluru based Brickwork credit rating agency

Tags: Economy/Finance

The capital market regulator Securities Exchange Board of India (SEBI) has cancelled the license of the Brickwork Ratings India Pvt Ltd and asked it wind up its operation within six months. In an order issued on 6 October 2022 SEBI has prohibited it from taking on any new business,

SEBI in its order said that the company has “failed to exercise proper skill, care and diligence while discharging duties as a credit rating agency”.

 In a joint investigation of Brickwork by RBI and SEBI several irregularities were found in the working of the company. 

Some of the violations alleged in the findings of the two probes were delay or failure in recognition of default of non-convertible debentures of entities like Bhushan Steel, Zee Entertainment Enterprises, Essel Corporate Resources and Diamond Power Infrastructure while failing to review the rating of firms like Great Eastern Energy Corporation and Gayatri Projects.  

Brickwork is one of the seven Sebi-registered credit rating agencies. The others are CRISIL, CARE, ICRA, Fitch, Infomerics Ratings and Acuité Ratings & Research.

Brickwork Ratings

It was set up in 2007 and Canara Bank was one of the promoters of Brickworks Ratings 

It’s Headquarters: Bengaluru, Karnataka

Managing Director: Vivek Kulkarni.