In a stock exchange filing on Thursday, rating agency ICRA informed on the termination of services of Naresh Takkar, Managing Director and Chief Executive Officer.

"The Board of Directors of ICRA Limited, at a meeting today, after due consideration and taking into account the best interests of the Company and its various stakeholders, has decided to terminate the employment of Mr Naresh Takkar as Managing Director and Group CEO of ICRA, effective immediately. The ICRA Board will commence a search for a replacement," the filing said.

"Mr Vipul Agarwal, who was appointed Interim COO on July 1, 2019, remains responsible for the day-to-day operation of the Company until a CEO is appointed," it added.

On Friday, in reaction to the news, shares of ICRA Ltd halted its four-day rally to slip by 4.7 percent in intraday trade to Rs 2,655.05 apiece on NSE.

ICRA had sent Takkar on indefinite leave after an anonymous complaint was lodged against him alleging his involvement in the lapses that caused the agency to assign a high rating of AAA to IL&FS last year. The enquiry on these allegations is still on.

In September 2018, panic hit the markets after the country's leading infrastructure finance company IL&FS Lts defaulted on payments to lenders. The defaults put at risk the multiple investors, banks and mutual funds that were associated with its then high-rated deposits.

"ICRA remains committed to ensuring the independence and integrity of its ratings process and sound corporate governance," the company's stock filing said on Thursday.