03-07-2025
- Business
- New Indian Express
SAT quashes SEBI ban on former Care Ratings CEO, terms order a 'misadventure'
MUMBAI: The Securities Appellate Tribunal (SAT) has overturned an order issued by the markets regulator SEBI banning Rajesh Mokashi, the former managing director and chief executive of Care Ratings, for allegedly securing favourable ratings for a few issuers rated by his agency.
The markets regulator SEBI had in April 2023 had debarred Mokashi from associating with any stock markets or market intermediaries for two years.
The tribunal has also imposed a penalty of Rs 5 lakh on the Securities and Exchange Board for causing 'irreparable damages' to the appellant's reputation.
The tribunal in its order dated June 27 and uploaded on its website Wednesday also said SEBI caused reputational and financial damage to Mokashi and wasted judicial time, while ignoring justice BN Srikrishna's exoneration in the ratings case.
'The SEBI action had also caused a colossal loss of judicial time and resources, as well as financial loss, and loss of further opportunities,' the order said.
'This is an unfortunate case in which the SEBI had directed Care Ratings to send the appellant on leave till completion of the forensic audit…Though the Srikrishna report had returned a categorical finding that there was no evidence to suggest that the appellant had interfered with or influenced the rating decision, SEBI embarked on another misadventure to conduct one more proceeding through its WTM,' the SAT order noted.
