India's Care Ratings slumps 14% after CEO resigns

CARE Ratings

27/04/2022 06:13

** Shares of ratings agency  CREI.NS  fall as much as 13.9%
to 471 rupees, their lowest since Feb 14
    ** Co on late Tuesday said its chief executive officer and
managing director, Ajay Mahajan, had resigned due to personal
reasons (https://bit.ly/3xWrT3Q)
 
    ** CREI has named Mehul Pandya as interim CEO, effective
June 1
    ** Mahajan was appointed after former CEO and MD Rajesh
Mokashi and former chairman S.B. Mainak were sent on leave in
2019 on allegations of interference with the ratings process and
influencing the ratings 
    ** Earlier this month, an independent inquiry found both the
executives not guilty of potential misconduct  urn:newsml:reuters.com:*:nL3N2WA2H7
    ** Executives of ratings agencies such as ICRA Ltd, the
Indian unit of Moody's Investors Service, had also come under
scrutiny after the collapse in 2018 of the shadow bank behemoth
Infrastructure Leasing and Financial Services (IL&FS)
    ** About 587,173 shares change hands, 5x 30-day avg
    ** CREI shares down 23% YTD after gaining 17.8% last year

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))