SAT quashes Sebi ban on former Care Ratings MD

By

, ET BureauLast Updated: Jul 02, 2025, 06:02:00 AM IST

Synopsis

The Securities Appellate Tribunal (SAT) overturned Sebi's order that prohibited Rajesh Mokashi, ex-MD of Care Ratings, from engaging with stock market entities for two years due to alleged credit rating manipulation. SAT criticized Sebi's action as a misadventure, causing significant damage to Mokashi's reputation and career. Sebi has been directed to compensate Mokashi ₹5 lakh for the appeal costs.

Kolkata: The Securities Appellate Tribunal (SAT) has quashed an earlier order by the Securities & Exchange Board of India (Sebi) that had barred Rajesh Mokashi, former Care Ratings managing director, from associating with stock market-related entities for two years for manipulating credit ratings.

In a strongly-worded verdict, the SAT said it was a misadventure by Sebi that "caused colossal loss of judicial time and resources and, above all, a miserable trauma of irreparable damage to the appellant's reputation, besides financial loss and loss of further opportunity to him".

Justice PS Dinesh Kumar, SAT presiding officer, passed the order on June 27 against an appeal by Mokashi, who resigned as Care Ratings MD in December 2018 - about five months after he was sent on forced leave by the rating agency. Justice Kumar also directed Sebi to pay Mokashi ₹5 lakh, the cost of the appeal.

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