"Having heard the learned counsel for the parties at some length, we are prima facie of the opinion that Sebi
has the power to initiate proceedings under Section 15-I(3) of the SEBI Act," the SAT said in an order dated July 1 in an appeal filed by India Ratings. The SAT will further hear the matter after Sebi and India Ratings submit their replies.
In December 2019, Sebi had imposed a penalty of Rs 25 lakh on India Ratings and two other credit raters for violating the code of conduct while rating IL&FS
for FY19. The SAT said: “We further direct that the proceedings in pursuance to the second show-cause notice dated January 28, 2020, will continue and Sebi will pass appropriate orders after giving an opportunity of hearing to the appellant (India Ratings) either through physical hearing or through video conferencing.”