Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Sebi enhances disclosure rules for credit rating agencies
BackBack

Sebi enhances disclosure rules for credit rating agencies

Credit rating agencies will be required to publicly provide more details of the criteria and process behind rating changes and review each criteria periodically

Sebi said in case a debt issuer does not co-operate with an agency, it will continue to rate the instrument and disclose the situation. Photo:ReutersPremium
Sebi said in case a debt issuer does not co-operate with an agency, it will continue to rate the instrument and disclose the situation. Photo:Reuters

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

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Nov 2016, 07:48 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App