SEBI orders rating agency brickwork to shut down

Markets regulator Sebi has cancelled the licence of credit rating agency Brickwork Ratings for multiple lapses and has ordered the company to close its operations within six months. Brickwork, founded by banking and former credit rating agency professionals, is one of the seven such agencies registered with Sebi. According to its website, Canara Bank is a promoter and a strategic partner.

The markets regulator, in an order signed by member Ashwani Bhatia, also said the agency that it cannot take on any fresh business.

Sebi’s crackdown on rating agencies began after Infrastructure Leasing & Finance Services (IL&FS) collapsed in 2018. One of the allegations against rating agencies was that they did not respond to risk build-up and overleveraging in the company.