Brickwork Ratings on Friday said it is considering appropriate legal recourse, a day after the market regulator SEBI cancelled the registration of the credit rating agency and directed it to wind down operations in six months.
In its order, SEBI highlighted several violations by Brickwork, including that it failed to follow a proper rating process and exercise due diligence while providing ratings. On Friday, the rating agency expressed disappointment at SEBI's ruling.
"Brickwork Ratings 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 said in a statement.
According to the statement, SEBI's suggestions pursuant to prior inspections had always been taken in the right spirit and that the company has implemented robust software development to address some of the issues.
"In addition, timely course correction measures have been taken to align with regulatory instructions and industry best practices. Brickwork Ratings has always striven to ensure compliance to the highest standards in its rating practices with strong internal checks and balances throughout," it added.
Under such circumstances, Brickwork Ratings said it finds the recent allegations to be a shocking development.
Among other directions, SEBI has also barred the credit rating agency from taking any new clients.
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