At 10:25 am, the stock was trading 4 per cent lower at Rs 870 apiece as against a 0.12 per cent fall in the benchmark S&P BSE Sensex. In comparion, shares of peer agencies were trading higher. Icra touched a high of 0.9 per cent while Crisil zoomed 3 per cent in the intra-day trade.
Rating agencies have come under the watchdog's lense ever since the fallout of Infrastructure Leasing and Financial Services (IL&FS). The non-banking finance company (NBFC), which went insolvent last year, had highest credit ratings by such agencies. India Ratings & Research, which is owned by Fitch Ratings, and Care Ratings
had granted IL&FS AAA ratings, indicating the highest level of creditworthiness.
has launched adjudication proceedings against three rating agencies ICRA, Care Ratings
and India Ratings in the ratings assigned to IL&FS and its group firms. The regulator is probing whether the agencies acted in an appropriate manner in issuing ratings to IL&FS group firms.
Early in July, Icra had sent its MD and CEO Naresh Takkar on leave afor similar reasons. READ HERE
So far in 2019, CARE Ratings has slipped 7.4 per cent as against a nearly 9 per cent rise in the BSE Sensex.