The Securities and Exchange Board of India (SEBI) on July 04, 2024, issued the notification regarding the Measures for Ease of Doing Business for Credit Rating Agencies (CRAs) – Timelines and Disclosures.
The following has been stated namely: -
• Reference is drawn to the Master Circular for Credit Rating Agencies dated May 16, 2024.
• The following modifications have been made namely: -
o Para 28.3.3 has been modified to provide specific timelines for dealing with appeals made by the issuer in respect of rating actions carried out pursuant to periodic surveillance of ratings:
1. Communication of the rating to the issuer – 1 working day of the Rating Committee meeting
2. Request for review/appeal of rating by the Issuer – 3 working days of the Rating Committee meeting
3. Dissemination of Press Release on CRA’s website and intimation of the same to Stock Exchange/Debenture Trustee – 7 working days of the Rating Committee meeting
o The following disclosure shall be made under Para 31.1.2 namely: -
“3.1. Disclosure of list of non-cooperative issuers–Daily (Para 11.6 of the Master Circular)
3.2. Disclosures in case of rating not accepted by an issuer – 12 months (Para 28.5.2 of the Master Circular)
3.3. Disclosure in case of delay in periodic review – 12 months (Para 28.6 of the Master Circular”
This shall be applicable from August 01, 2024.
[Notification No. SEBI/HO/DDHS/DDHS-PoD-3/P/CIR/2024/97]
