India's market regulator on Thursday barred the former chief executive of Care Ratings Ltd from the securities market for two years for violation of rules.
The Securities and Exchange Board of India (SEBI), in its order, said that Rajesh Mokashi, the former managing director and chief executive of Care, interfered in the rating committee decision while it rated instruments issued by Yes Bank, Dewan Housing and Finance Ltd, now known as Piramal Capital and Housing Finance Ltd, and Infrastructure and Financial Services Ltd, a unit of Infrastructure Leasing & Financial Services Ltd.
The regulator said that Mokashi was only "paying performative obeisance" to the regulatory mandate by not being part of the rating committees but was still interfering in rating decisions. The law does not permit the management of a rating firm to be part of the rating committee.
Mokashi cannot be a part of any market intermediary for two years, SEBI ruled.
CG Power
India's market regulator penalised two former auditors of CG Power and Industrial Solutions Ltd on Thursday for rule violations, according to an order published on the regulator's website.
The Securities and Exchange Board of India (SEBI) levied a penalty of 500,000 rupees each on the auditors, Chaturvedi & Shah, and K. K. Mankeshwar & Co.
In its order, the regulator held that instead of working in the interest of the shareholders of CG Power, the auditors "facilitated the scheme of cleaning up the books of accounts of CG Power".
And that despite being aware of the irregularities and misstatements in the financial statements of CG Power, the auditors "certified the books as true and fair".