SEBI Tightens Rules For Credit Rating Agencies
By Team Legistify / 2017-07-12

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


The Securities and Exchange Board of India (SEBI) has tightened norms for credit rating agencies (CRAs), asking them to proactively monitor the financial health, including share price movement, of companies, to provide timely and accurate ratings on their debts.

The decision follows several instances of rating agencies not taking cognizance of delays in servicing debt obligations by the issuers they rate, even though the information has already been discounted by the market.

Besides, the market regulator has increased the disclosure requirements.

CRAs are required to track the servicing of debt obligations for each instrument rated by them, ISIN (International Securities Identification Number) wise, and look for potential deterioration in financials which might lead to defaults/delays, particularly before/around the due date(s) for servicing of debt obligation

SEBI Circular

None

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Related Posts

Read More News on Similar Topics