Why did SEBI Cancel Brickwork's Certificate of Registration?

Brickwork Ratings India Pvt. Ltd

It is a SEBI-registered & RBI-accredited credit rating agency registered in 2008.

How Did it Begin?

SEBI and RBI conducted a joint inspection from January 20-24, 2020, examining Brickwork's records from October 1, 2018 to November 30, 2019.

What Did They  Discover?

The inspection revealed several irregularities which were prima facie in violation of the provisions of the CRA Regulations & certain SEBI Circulars.

The SEBI Order

In October 2022, SEBI instructed Brickwork to cease its credit rating agency operations & client onboarding within six months due to regulatory violations.

Reasons for License Cancellation

Failure to document meetings with management. Lack of independent analysis of the company’s financial projections. Delays in recognising defaults.

Implications of the Brickworks Wrong Reporting

Casts doubt on the reliability of credit ratings. Reduces the choice of rating agencies available to issuers.