Mokashi is the second rating agency CEO to go on leave after the IL&FS crisis.
CARE Ratings shares fell nearly 5 percent intraday on July 18 after the company sent its Managing Director and Chief Executive Officer Rajesh Mokashi on leave after Securities and Exchange Board of India (SEBI) received an anonymous complaint.
Mokashi has been sent on leave with immediate effect until further notice, CARE Ratings said in a filing with the BSE.
The rating agency appointed TN Arun Kumar, an executive director, as the interim CEO.
"He (Arun Kumar) will not be part of rating operations to ensure the independence of ratings," the company said in the statement.
Mokashi is the second rating agency CEO to go on leave after the IL&FS crisis.
ICRA's MD and CEO Naresh Takkar was also sent on leave after market regulator SEBI had received an anonymous complaint.
Rating agencies came under criticism for giving high ratings to debt instruments of IL&FS group's companies, which eventually tanked.
The stock was quoting at Rs 865.00, down Rs 41.70, or 4.60 percent on the BSE at 1129 hours IST.
