Brickwork says SAT has stayed Sebi order cancelling its registration

Brickwork Ratings on Friday said the Securities Appellate Tribunal (SAT) has stayed market regulator Sebi's order cancelling the registration of the rating agency.

On October 6, Sebi cancelled the registration of the credit rating agency and directed it to wind down operations in six months.

The rating agency filed an appeal against the order.

In a statement, Brickwork said the tribunal on Friday heard its appeal and stayed the operation of Sebi's order pending final hearing of the appeal.

According to the statement, the tribunal also said till the appeal is heard finally, Brickworks should not take up new assignments.

The tribunal has posted the appeal for final hearing on November 15.

In its order, Sebi had highlighted several violations by Brickwork, including that it failed to follow a proper rating process and exercise due diligence while providing ratings.

Among other directions, Sebi has also barred the credit rating agency from taking any new clients.

On Thursday, Sebi had issued fresh norms pertaining to cancellation, suspension and surrender of registration certificate of a credit rating agency.