Sebi imposed a fine of Rs 25 lakh each on credit ratings agencies pertaining to ratings of various debentures of IL&FS. After examining the role of credit rating agencies Sebi noted that credit rating agency failed in assigning rating to various NCDs of IL&FS.

Sebi also noted that the default in IL&FS has occurred due to lethargic indifference, needless procrastination and laxity on the part of credit rating agencies. Sebi further said that credit rating agencies should have anticipated the mounting credit risks, the stressed balance sheet position of the issuer and placed the ratings accordingly to alert the market in advance regarding the deteriorating financial profile of the issuer.

Sebi said while there was no allegation of mala fide on the part of the rating agencies, their failure was serious considering the responsibility bestowed upon them by investors and regulators.

Shares of Care Ratings were trading 3.19% higher at Rs 525.3. ICRA was up 1.24% at Rs 2821.60.