Infomerics Valuation and Rating on Friday settled with capital markets regulator SEBI a case pertaining to alleged violation of credit rating agencies rules after paying Rs 57.63 lakh towards settlement charges.
Infomerics Valuation and Rating Pvt Ltd (applicant) is a SEBI-registered credit rating agency.
The order came after the applicant filed an application requesting for settlement of the adjudication proceedings under the SEBI's (Settlement Proceedings) rules.
"The instant adjudication proceedings initiated against the applicant vide show cause notice dated Oct. 31, 2023 is disposed of in terms of the settlement regulations," SEBI's Chief General Manager N Hariharan said in the settlement order.
The Securities and Exchange Board of India had undertaken an inspection of the applicant for the period from February 2022 to January 2023.
After the findings of the inspection conducted by the regulator and the response of the applicant submitted to SEBI, certain non-compliances of the Credit Rating Agencies regulations dated June 13, 2019, were alleged to have been committed by the Infomerics Valuation and Rating.
Further, a show cause notice was issued by SEBI on Oct. 31, 2023, to Infomerics Valuation and Rating for allegedly flouting the CRA norms.
Pursuant to the receipt of the settlement application Infomerics Valuation and Rating filed revised settlement terms, wherein it will pay Rs 57.63 lakh towards settlement amount.
Also, the markets watchdog advised the applicant to take appropriate action against the individuals responsible for the irregularities under intimation to SEBI.
The revised settlement terms proposed by the applicant were approved by the SEBI's High Powered Advisory Committee, which recommended the matter be settled.
After remitting the settlement fee of Rs 57.63 lakh, Infomerics Valuation and Rating settled the case with SEBI.
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