In the release filed with the exchanges, the company’s board of directors also stated that they will commence a search for a replacement.
After four sessions of gains, shares of rating agency ICRA fell as much as 5 percent on August 30 session, a day after the company announced the immediate termination of its Managing Director and Group CEO.
The board of rating agency ICRA, an affiliate of Moody’s, on August 29, terminated the services of its managing director and CEO Naresh Takkar, following the appearance of his name in the IL&FS case.
In the release filed with the exchanges, the company’s board of directors also stated that they will commence a search for a replacement. No reason was mentioned for the termination of Takkar’s employment.
The release also stated that Vipul Agarwal, who was appointed interim COO on July 1, 2019, remains responsible for the day-to-day operation of the company until a new CEO has been appointed.
According to reports, Takkar was sent on forced leave in July following a review by the rating agency pending an enquiry into the “concerns” raised by the capital markets watchdog SEBI.
Takkar’s forced leave in July was seen as an unprecedented step, a first in the industry, which occurred at a time when the rating agencies were under a cloud following the IL&FS debacle.
The infra lender was enjoying top ratings right till the time of its first default in late August last year.
Earlier in May, there were reports that the ICRA brass was being probed for influencing the ‘AAA’ rating on IL&FS and had hired KPMG to look into the allegations.
Takkar had been at the helm of ICRA for long and was also recently appointed by the Reserve Bank as a member of its committee on the development of housing finance securitisation market, which is chaired by Bain & Co’s Harsh Vardhan.
Shares of ICRA traded 2.21 percent down at Rs 2,738 on BSE around 1020 hours.
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