Theranautilus Secures $1.2 Mn in Seed...
19 Nov 2024
The Securities and Exchange Board of India (SEBI) has introduced new guidelines to streamline and simplify operations for credit rating agencies. These guidelines, which come into effect on August 01, 2024, aim to enhance the ease of doing business.
The circular from SEBI specifies timelines for handling appeals made by companies concerning rating actions during periodic surveillance. SEBI emphasized that these timelines were established after consulting stakeholders, including Credit Rating Agencies (CRAs).
Under the new rules, CRAs must communicate ratings to companies within one working day of the rating committee meeting, ensuring promptness. Companies then have three working days to request a review or appeal the rating decision. Additionally, CRAs must publish the press release on their website and inform the stock exchange or debenture trustee within seven working days of the rating committee meeting.
CRAs are required to maintain records of these disclosures for ten years, which may be shared with debenture trustees upon request. These disclosures must be available on the CRAs' websites under the issuer-specific press releases/rating rationale section.
SEBI also set specific timelines for other disclosures, such as updating the list of non-cooperative issuers daily to keep stakeholders informed. Information about ratings not accepted by issuers must be maintained for 12 months.
To ensure compliance, the guidelines will be monitored through half-yearly internal audits for credit rating agencies, as mandated under the CRA norms. These measures are designed to protect investors and promote the development and regulation of the securities market.
Chat on WhatsApp
Request a call back
