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Can credit rating agencies be liable for defaults? SAT to give its verdict


Can credit rating agencies be liable for defaults? SAT to give its verdict
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Passing an interim order in the matter SAT opined “questions” arise in the matter whether a rating agency can be held liable for a credit default even if all the internal procedures were followed and there is no ‘mala fide’ intention on the part of CRA.
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The Securities Appellate Tribunal (SAT), which hears appeals of securities markets, will render its verdict on liability of credit rating agencies (CRAs) in case of a debt market default. In September, Sebi had imposed a fine of Rs one crore on Brickworks, a CRA for not taking timely action in several instances. In its order, Sebi Said Brickworks had not conducted proper due diligence. Brickworks has now moved SAT seeking relief on this order. ....

Moin Ladha , Great Eastern Energy Corporation , Khaitan Co , Essel Group Entities , Securities Appellate Tribunal , Sebi Said Brickworks , Reserve Bank , Diamond Power Infrastructure , Great Eastern Energy , மாய்ந் லாத , நன்று கிழக்கு ஆற்றல் நிறுவனம் , கைதன் இணை , எசெல் குழு நிறுவனங்கள் , பத்திரங்கள் மேல்முறையீடு தீர்ப்பாயம் , செபி கூறினார் செங்கல் வேலைகள் , இருப்பு வங்கி , வைரம் பவர் உள்கட்டமைப்பு , நன்று கிழக்கு ஆற்றல் ,