Don't sue credit raters, SEBI tells companies

Chairman of market regulator Securities and Exchange Board of India (SEBI), UK Sinha, on Wednesday told Indian corporates to abide by the due process of law and not draw ratings agencies into litigation.

Chairman of market regulator Securities and Exchange Board of India (SEBI), UK Sinha, on Wednesday told Indian corporates to abide by the due process of law and not draw ratings agencies into litigation.

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"My message to corporates is that if they are raising money, they should be willing to follow the rules of the game," Sinha said in Mumbai. "I am also sure that all the boards of the country are aware that if Sebi is regulating a particular industry and a particular instrument is looked by Sebi, I hope they will let the due process prevail rather than coming in the way of this."

Earlier in the year, Veritas had raised questions about the operations of two listed real estate majors, following which one of the companies, Indiabulls, filed a case with the economic offences wing of the crime branch in New Delhi and Mumbai

On concerns over high frequency of algo trades, Sinha said SEBI recently came up with guidelines disincentivising such activity.