SAT grants interim relief to Brickwork Ratings

The Securities and Appellate Tribunal (SAT) has granted an interim stay on the Securities and Exchange Board of India (Sebi) order against Brickwork Ratings India cancelling its licence.

Last week, Sebi had directed Brickwork Ratings to wind down its operations within six month and barred it from adding any new client from the date of the order.

The punitive regulatory action came after Sebi observed the credit rating agency failed to follow proper rating process and exercise due diligence while providing ratings.


The tribunal said in the meantime till the appeal is heard finally, Brickworks Ratings should not take up new assignments. The matter has been posted for next hearing on November 15,2022.

Sebi had alleged that the agency failed to ensure proper maintenance of records to support its ratings and delayed dissemination of information with respect to monitoring of rating.

The regulator’s inspection also found that Brickwork Ratings failed to comply with timelines prescribed in its internal operational manual in more than 75% of the cases. It also did not address the issue of conflict of interest arising due to a rating committee member having business development roles.

It alleged that the rating agency failed to make correct disclosures in its press releases concerning some issuers.