Sebi launched a probe in the aftermath of a redemption crisis faced by JP Morgan India Treasury Fund and JP Morgan India Short Term Income Fund in August 2015. Sebi launched a probe in the aftermath of a redemption crisis faced by JP Morgan India Treasury Fund and JP Morgan India Short Term Income Fund in August 2015. The crisis was brought on by a sharp downgrade and withdrawal of ratings on the bonds of Amtek Auto, which was on the verge of defaulting on Rs800 crore in bond repayments. Additionally, it considered standalone instead of consolidated financials of Amtek Auto and downgraded the rating by only one notch.”CARE chose to suspend its rating on Amtek Auto on 7 August 2015. At the time, the agency had given Amtek Auto a rating of AA-, signifying a relatively high degree of safety on timely servicing of financial obligations.

Source: Mint May 16, 2017 20:03 UTC