Sebi, on 13 September, revoked its previous order for the cancelling of Brickworks Ratings licence after the Securities Appellate Tribunal approached Sebi to “reconsider the quantum of penalty”.

Following this, Sebi has allowed the company to operate but has imposed several restrictions and is subject to fulfilling the regulatory requirements.

In the latest order issued by Sebi on 13 September, the capital markets regulator has asked the company not to onboard new clients or take fresh mandates from existing clients for the next six months. Sebi has also asked to broadbase its board to take the total number of board members to nine.

Its order said, “The new members who are inducted to the Board shall either be Independent Directors or Non-Executive Directors not related/connected to the founding management of the Notice.”

Sebi has also asked the company to ensure the Chief Rating Officer (CRO) has sufficient experience in risk management and credit rating and has to undergo in-depth training by an entity not related to the company.

The company must also appoint a CEO in the next 3 months.

The regulator has given the company 5 months time to complete the orders that have been given to them, and the regulator will complete the review within the next 6 months.