IL&FS case: After auditors\, credit rating agencies face govt heat

IL&FS case: After auditors, credit rating agencies face govt heat

MCA may invoke Section 447 of Companies Act to slap penalty and suspend some of the rating agencies

Shrimi Choudhary  |  New Delhi 

The Ministry of Corporate Affairs (MCA) is planning to act tough against some of the top credit rating agencies in relation to the IL&FS case, according to sources in the know. These agencies had rated the debt instruments of IL&FS Financial Services (IFIN), which went bust.

The ministry may invoke Section 447 of the Companies Act for imposing penalty and suspending these firms and their executives, one of the sources said. The development follows the government moving the National Company Law Tribunal (NCLT) on Monday to ban the auditors of IFIN for five years over failure in ...

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First Published: Tue, June 11 2019. 22:02 IST