Mumbai: India’s capital market regulator, Securities and Exchange Board of India (Sebi), on Tuesday tightened disclosure norms for credit rating agencies in a bid to boost transparency and accountability after a number of sudden sharp rating changes created concern among investors.

Credit rating agencies (CRAs) will be required to publicly provide more details of the criteria and process behind rating changes and review each criteria periodically, Sebi said.

CRAs will also have to disclose details of ratings even if a rating is not accepted by a debt issuer, or if a review is not made by the time an updated rating is due, Sebi said, adding the new guidelines need to be implemented by the CRAs in the next 60 days.

Sebi said in case a debt issuer does not co-operate with an agency by withholding information or not paying fees, the agency will continue to rate the instrument based on the best available information and disclose the situation. Reuters