IL&FS defaulted on its obligations in respect of the commercial papers and inter-corporate deposits, due for payment on 14 September 2018, and rated by these agencies. It also defaulted in interest payments on its NCDs on September 17, 21, 26 and 29.

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.

CARE said on Tuesday that it was reviewing the adjudication order and considering the appropriate course of action.

Shares of CARE Ratings extended their winning run to seventh consecutive trading session. The stock has advanced 48.96% in seven trading sessions from its closing low of Rs 478.70 on 20 December 2019.

The stock trades below its 200 days simple moving average placed at 733.19. This level will act as crucial resistance in near term.

CARE Ratings is a leading credit rating agency of India. The company provides various credit ratings that help corporates to raise capital for their various requirements and assist the investors to form informed investments decision based on the credit risk and their own risk-return expectations.