CARE Ratings Sends CEO On Leave After Anonymous Complaint
TN Arun Kumar, currently serving as the executive director (ratings), has been named as an interim CEO.
CARE Ratings Ltd. has sent its chief executive officer and managing director Rajesh Mokashi on leave till further notice after an anonymous complaint was filed against him at the Securities and Exchange Board of India.
The decision is pending the completion of the examination of an anonymous complaint received by the market regulator and forwarded to CARE Ratings, the agency said in an exchange filing dated Wednesday.
TN Arun Kumar, currently serving as the executive director (ratings), has been named as an interim CEO, the release said. Kumar will not be a part of the rating operations to ensure independence of ratings, it said.
Earlier this month, Moody’s Investors Services’s India unit ICRA Ltd. had put its chief on leave amid a probe into a controversial decision, in the latest sign of trouble in the nation’s credit evaluation history.
Rating agencies have come under fire for missing warning signs like IL&FS soaring debt load, which jumped 44 percent between 2015 and 2018. The default of the infrastructure financier sent shock waves across the country’s credit markets, triggering a liquidity crisis that is still reverberating among NBFCs.