IL&FS crisis: Parliamentary panel recommends probe into rating agencies’ role

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New Delhi | Published: February 15, 2019 5:42:46 AM

The parliamentary standing committee on finance has recommended to the government that a commission of inquiry be set up into the role played by credit rating agencies (CRAs) in the crisis related to the IL&FS Group.

il&fs, parliamentThe committee is of the view that these agencies ignored the rising debt levels at the IL&FS Group, while assessing its creditworthiness.

The parliamentary standing committee on finance has recommended to the government that a commission of inquiry be set up into the role played by credit rating agencies (CRAs) in the crisis related to the IL&FS Group.

The committee is of the view that these agencies ignored the rising debt levels at the IL&FS Group, while assessing its creditworthiness.

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“As regards the matter of IL&FS crisis, wherein the government has since intervened and re-constituted the board (the matter being under National Company Law Tribunal), the committee would recommend a comprehensive commission of inquiry into the whole gamut of the episode, which will inter-alia probe the role of CRAs that had over-rated the entities sometime before the crisis and the role of the largest institutional stakeholder in IL&FS, namely the LIC of India, as well as other institutional stakeholders,” the committee said.

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