InvestorQ : I have been invested in ICRA for over 3 years now. I find the stock price falling sharply in the last few weeks. Should I hold on to the stock?
Neelam Naik made post

I have been invested in ICRA for over 3 years now. I find the stock price falling sharply in the last few weeks. Should I hold on to the stock?

Answer
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Priyanka N answered.
1 year ago


The recent fall in price of ICRA has to do with the default by IL&FS last year. There has been anonymous complaint against the CEO, Naresh Thakkar. The complaint had alleged that the top management of ICRA had deliberately influenced the ratings of IL&FS and had given it a good rating when they were aware of the problems in the infrastructure finance company. The complaint is anonymous but it has resulted in SEBI ordering an investigation into the company and its ratings assigned to ICRA. As a measure of best practice, the ICRA board has decided to ask the CEO to proceed on leave till the time the investigation is completed. This is normal practice and the only thing you need to be watchful is whether this is a one-off case or whether there is a larger problem. Just track the stock and if you find the problems at ICRA deepening then you can ideally get out of the stock. Otherwise, you can hold on to the stock for the time being.