SAT quashes Sebi order on Brickworks

MUMBAI: The Securities Appellate Tribunal (SAT) has overturned the order of the Securities and Exchange Board of India (Sebi) that had cancelled the certificate of registration (CoR) of Brickworks Ratings. SAT’s ruling comes following an appeal by the rating agency.
The tribunal, in its order, said that the violations “are routine operational errors which have unnecessarily been escalated to regulatory proceedings”. It also asked Sebi toconsider the observations made by the SAT and provide an opportunity for a hearing of Brickworks Ratings.
SAT emphasised the importance of proportionality in punitive measures and highlighted that the measures indicated in regulations 26 and 27 of the Intermediaries Regulations should have been considered before taking such a drastic step. The regulations mentioned relate to those pertaining to the cancellation of registration.