That is true. In fact, SEBI slapped a fine of Rs.1 crore on CARE Ratings over lapses in the RCOM case. This refers to the default by RCOM on its principal repayment of Rs.375 crore and the interest payment of Rs.9.75 crore way back in 2017. While the default happened in Feb-17, CARE downgraded the rating to Default category in Mar-17.

According to SEBI, CARE had failed to monitor the factors that impact the creditworthiness of RCOM and had also been slow to react. SEBI pointed out that CARE did not initiate any action even after RCOM failed to furnish the no-dues statement or NDS even after 1 year of not getting the information. The penalty is huge by credit rating agency standards.