Sebi seeks explanation from CARE’s ex-chairman, MD for rating interference

Markets regulator Sebi has sought explanation from erstwhile managing director and CEO, and chairman of CARE Rating for their interference in the rating process of entities including DHFL, IL&FS and Yes Bank, sources said.
In a letter on February 12, the Securities and Exchange Board of India (Sebi) has also asked why the officials should not be debarred from associating as key managerial person or director of any registered intermediary and listed company, they added.
In addition, the regulator has asked CARE Rating’s board to initiate action against the officials and all the staff members involved in the rating process of the IL&FS debt, the sources said.
Incidentally, on the same day, the rating agency announced that S B Mainak resigned as its chairman.
The Sebi action comes after the regulator received the forensic audit report on February 11, which was commissioned after a whistleblower complaint.
The forensic report, prepared by EY, has scrutinised calls, WhatsApp …