RBI asks entities to stop obtaining ratings from Brickwork

Mumbai: The Reserve Bank on Wednesday directed entities falling under its regulations to immediately stop obtaining any new ratings from Brickwork Ratings India, which has been asked by Sebi to wind down operations.

On October 6, the capital markets regulator Sebi cancelled the licence of Brickwork Ratings India, directing the credit rating agency to wind down its operations within six months of the order, for allegedly violating various rules.

Citing the cancellation of the Certificate of Registration (CoR) granted to the rating firm by Sebi, the Reserve Bank of India said the regulated entities/market participants are advised not to obtain fresh ratings/evaluations from the said rating agency with immediate effect.

The regulated entities falling under RBI include banks, NBFCs, credit information bureaux, housing finance companies among others.

"The instructions regarding the prudential treatment of the existing ratings issued by the rating agency shall be advised separately," RBI said in a release.