INSUBCONTINENT EXCLUSIVE:
Shares of Care Ratings declined over 4 per cent in early trade on Thursday after the company sent its managing director (MD) and CEO on
leave after an anonymous complaint was filed against him at the Securities and Exchange Board of India (Sebi)
The scrip was down 4.35 per cent at Rs 867.30 at around 9.40 am (IST), while the BSE Sensex was trading 100 points, or 0.26 per cent, lower
Kumar, now executive director (Ratings), as interim CEO of the company
Rating companies have been facing criticism amid a series of defaults over the past eight months
Critics believe rating companies delayed downgrading borrowers sufficiently before they missed deadlines on principal repayment or interest
Infrastructure conglomerate IL-FS triggered first such criticism last year
Rating companies started cutting the creditworthiness of once-the-top-rated company drastically after it had failed to repay debt