Infomerics Valuation Pays Rs 57.6 Lakh To Settle CRA Rule Violation Case With SEBI

New Delhi: Infomerics Valuation and Rating Pvt Ltd, a SEBI-registered credit rating agency (applicant), settled a case regarding an alleged violation of credit rating agencies' rules after paying Rs 57.63 lakh towards settlement charges with capital markets regulator SEBI (Securities and Exchange Board of India) on Friday. The order came after the applicant filed an application requesting settlement of the adjudication proceedings under the SEBI's (Settlement Proceedings) rules.

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SEBI Settlement: Infomerics Valuation settled a case with SEBI by paying Rs 57.63 lakh over alleged violations of credit rating agency regulations.

"The instant adjudication proceedings initiated against the applicant vide show cause notice dated October 31, 2023, is disposed of in terms of the settlement regulations," Sebi's Chief General Manager N Hariharan said in the settlement order. The Securities and Exchange Board of India (SEBI) had undertaken an inspection of the applicant for the period from February 2022 to January 2023.

Infomerics Valuation Settles SEBI Case with Rs 57.63 Lakh Settlement Fee

After the findings of the inspection conducted by the regulator and the response of the applicant submitted to SEBI, certain non-compliances with the CRA (Credit Rating Agencies) regulations dated June 13, 2019, were alleged to have been committed by the Infomerics Valuation and Rating. Further, a show cause notice was issued by SEBI on October 31, 2023, to Infomerics Valuation and Rating for allegedly flouting the CRA norms.

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According to the receipt of the settlement application, Infomerics Valuation and Rating filed revised settlement terms, wherein it will pay Rs 57.63 lakh towards the settlement amount. Also, the markets watchdog advised the applicant to take appropriate action against the individuals responsible for the irregularities under intimation to SEBI. The High Powered Advisory Committee (HPAC) of SEBI, which recommended settling the matter, approved the revised settlement terms proposed by the applicant. After remitting the settlement fee of Rs 57.63 lakh, Infomerics Valuation and Rating settled the case with SEBI.