Former heads of CARE Ratings have not been found guilty after misconduct investigation

An independent investigation has found that former top executives of India’s CARE Ratings Ltd are not guilty of possible misconduct, the company said in a regulatory statement on Tuesday.

The allegations against Rajesh Mokashi, former CEO and CEO, and SB Mainak, former chairman, of interfering with the valuation process and influencing the valuations could not be substantiated, the company said.

The rating agency had appointed a former Supreme Court judge to conduct an independent investigation, which submitted its findings to the company’s board on April 11.

Mokashi declined to comment, while Mainak could not be reached for comment.

In 2019, the company had sent the executives on leave after an anonymous complaint against officials was sent to the Securities and Exchange Board of India (SEBI).

Managers of other rating agencies such as ICRA Ltd, the Indian entity of Moody’s Investors Service, were also brought under control after the collapse in 2018 of the shadow bank behemoth Infrastructure Leasing and Financial Services (IL&FS), which sent shock waves over India’s financial system .

The rating agencies had given IL & FS ratings that reflect the highest levels of creditworthiness, and the sudden collapse of the company caused fears about contamination in the financial sector and shocked investors in both the stock markets and debt markets.

(Reporting by Nupur Anand; Edited by Susan Fenton)

(Only the headline and image of this report may have been re-edited by Business Standard staff; the rest of the content will be automatically generated from a syndicated feed.)

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