Sebi looks into Crisil deal
Sebi looks into Crisil deal

Sebi looks into Crisil deal


The market regulator, Securities and Exchange Board of India (SEBI) is scrutinising Crisil’s purchase of an 8.9% stake in rival credit rating firm CARE Ratings on June 29, after the latter complained the transaction was an attempt at a potential hostile takeover, a leading business daily reported today.

SEBI has sought clarifications from Crisil about its motive and questioned it whether the purchase represented a financial investment or had wider strategic implications such as a takeover.
“This is an investment. We are optimistic about the long-term growth prospects of the credit rating sector,” said Crisil, while there were no comments from Care Ratings.
The report also quoted a SEBI official stating that Care Ratings has made its representation to them on the same and the regulator will now scrutinise Crisil’s response.