Market regulator SEBI has made these changes based on the suggestions of a working group formed on credit rating agencies. SEBI gave this information.
Stock market regulator SEBI has revised the time limit with the introduction of compliance deadlines for credit rating agencies in ‘working days’ instead of ‘days’. The Securities and Exchange Board of India (SEBI) in a circular announced changes in the rules for CRAs with the aim of standardizing the rating process and publishing protocols.
These changes have been made based on the recommendations of a working group on credit rating agencies. The working group had highlighted the challenges arising from the existing timelines, especially on non-working days.
SEBI said, “One of the recommendations of the CRA working group for ease of doing business relates to the revision of the approach to specifying deadlines from ‘days’ to ‘working days’.”
What were the rules earlier, what has changed now
Under the revised rules, credit rating agencies are required to issue a press release on rating actions within seven working days of an event occurring, which was earlier seven calendar days. Similarly, the timeline for reviewing ratings in cases of delay in debt servicing has been adjusted from two calendar days to two working days.
Apart from this, SEBI has also reduced the timeline for marking the rating as ‘issuer not cooperating’ if the non-default statement i.e. ‘NDS’ is not submitted for three consecutive months to five working days instead of seven calendar days.
Let us tell you that the Securities Exchange Board of India issues new guidelines from time to time to maintain transparency in the stock market and protect the interests of investors. Apart from this, SEBI also takes action to impose fines on brokers or big companies carrying out illegal activities in the stock market. Recently, in the case of front running, SEBI has imposed fines on many big investors and brokers, and has also banned them from working in the stock market.
