An independent inquiry into potential misconduct by the former Chairman SB Mainak and erstwhile Managing Director and CEO Rajesh Mokashi of Care Edge Ratings has found that the charges are not established.
“Justice Srikrishna has issued the final reports concluding that the charge against Rajesh Mokashi (erstwhile MD and CEO) and SB Mainak (erstwhile Chairman) of interference with the rating process and influencing the ratings is not established,” Care Edge Ratings said in a stock exchange filing on Tuesday.
Based on advice by SEBI, the board of the rating agency had in February 2020 decided to institute an inquiry into any potential misconduct by the erstwhile Chairman and the erstwhile MD and CEO in the credit rating process over the past three years.
“Justice (Retd) BN Srikrishna, former Judge of the Supreme Court of India who was appointed to conduct an independent inquiry in the matter, has now concluded the inquiry,” Care Edge Ratings said.
The reports were placed before the company board on April 11 and now have been forwarded to SEBI.
“The board reiterated its commitment to continue implementing measures to bolster and strengthen its rating process in letter and spirit,” Care Edge Ratings further said.
Mokashi had been sent on leave by the company in July 2019 following an anonymous complaint received by SEBI. This was seen as a fallout of the IL&FS crisis, whose ratings had overnight been sharply downgraded.
He resigned in December 2019 from MD and CEO of Care Ratings.