SAT permits SEBI to levy higher penalties on ICRA Ltd

The Tribunal was hearing a petition filed by ICRA Ltd against a second showcause notice issued by SEBI on 28 January where the regulator sought to increase the monetary penalty against the credit rating agency.

The Securities Appellate Tribunal (SAT) in an order ruled that Securities and Exchange Board of India (SEBI) has powers to enhance penalties or levy higher penalty than originally imposed.

Under Section 15-I (3) of SEBI Act, the watchdog had issued fresh notices after the board of it felt that ₹25 lakh of penalty imposed on December 26 on three rating agencies were inadeqaute. (Reuters file photo)

The Tribunal was hearing a petition filed by ICRA Ltd against a second showcause notice issued by SEBI on 28 January where the regulator sought to increase the monetary penalty against the credit rating agency. ICRA in its plea at SAT had sought to stay these proceedings.

Under Section 15-I (3) of SEBI Act, the watchdog had issued fresh notices after the board of it felt that ₹25 lakh of penalty imposed on December 26 on three rating agencies were inadeqaute. SAT in its order last week ruled that SEBI has powers to relook at its penalty orders