Markets regulator Sebi is considering to increase penalty on rating agencies in connection with lapses on their parts in assigning credit ratings to non-convertible debentures of IL&FS, officials said on Monday.
The crisis at diversified IL&FS, whose board was superseded by the government, came to light September 2018 and since then, the company as well as related entities have come under the regulatory lens.
Sebi in December 2019 slapped a penalty of Rs 25 lakh each on ICRA Ltd, CARE Ratings Ltd and India Ratings & Research Pvt Ltd and had said the default by IL&FS occurred due to “lethargic indifference and needless procrastination and laxity” of the rating agencies.
While the regulator came down heavily on the rating agencies with sharp observations but it was felt that the same was not reflected in penalty, officials said.
They believe that the fine imposed by the Securities and Exchange Board of India (Sebi) on these rating agencies was quite low given the …
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