SAT reduces Sebi’s penalty on CARE Ratings to Rs 10 lakh in Reliance Communications case

NEW DELHI: The Securities Appellant Tribunal (SAT) has reduced the penalty imposed by Sebi on CARE Ratings to Rs 10 lakh from Rs 1 crore in a case related to lapses in assigning credit rating to non-convertible debentures of Reliance Communications (RCom).

The tribunal has affirmed the regulator’s order with regard to the violation by CARE Ratings under the provisions of the Sebi Act and the CRA (Credit Rating Agency) rule.

However, the penalty has been reduced from Rs 1 crore to Rs 10 lakh, according to a SAT order dated June 9.

“It was a case of lack of due diligence for not having acted in a timely manner… we are of the opinion that the maximum penalty of Rs 1 crore is highly excessive,