SAT Overturns Sebi’s Order on Brickworks

The Securities Appellate Tribunal (SAT) has overturned the Securities and Exchange Board of India’s (SEBI) decision to cancel Brickworks Ratings’ registration certificate (CoR), a leading rating agency. SAT deemed Brickworks Ratings’ infractions as minor operational errors that were blown out of proportion during the regulatory investigation. The tribunal has urged SEBI to consider its observations and provide Brickworks Ratings a fair hearing. SAT emphasized the importance of proportionality when imposing punitive measures and called for a balanced approach that aligns with the gravity of the violations. This ruling has sparked discussions on rating agency regulations and the handling of operational errors. Market participants are closely watching the situation for potential implications in the wider financial industry. Brickworks Ratings, with over a decade of experience in providing credit ratings and analytical solutions, now awaits an opportunity to present its case before SEBI and seek a fair resolution.