One More Rating agency, CARE Ratings sends Its CEO on unspecified leave

New Delhi, July 18(HS) The Managing Director and CEO of CARE Ratings,Rajesh Mokashi has been sent on unspecified leave after receiving complaint from market regulator, Securities and Exchange Board of India(SEBI). In his place, Mr. T.N. Tarun has been appointed as Interim CEO. In its filings with Bombay Stock Exchange(BSE) on Wednesday, It has been mentioned that Mr. Mokashi will not be part of Rating Operations to ensure independence of ratings. Till completion of probe into complaint filed by SEBI, he has been sent on leave with immediate effect.

Following news of ‘CEO sent on leave’,  the price of CARE stock fell by 5 pc on Thursday while that of other rating agencies went up in stock market.

Other rating agencies like ICRA and India Rating and Research are also under lense of market regulator due to their improper credit assessment and unjustified ratings given to securities of IL & FS group companies, which led to eventual defaults by company. Earlier, ICRA sent its MD Naresh Thakkar due to same reason.