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Monitoring & Review Of Ratings By Credit Rating Agencies (CRAs)

Securities Law (Country: India)

SEBI, vide circular no. SEBI/ HO/ MIRSD/ MIRSD4/CIR/P/2017/71 dated 30th June 2017 to all Credit Rating Agencies Registered with SEBI, has provided some clarifications in respect of monitoring mechanism, disclosure norms and timelines - which are being brought to the attention of CRAs for compliance.

It has come to notice that there have been instances where Credit Rating Agencies have not taken cognizance of information regarding delays in servicing debt obligations by the Issuer, even though the information has already been discounted by the market.

As responsible institutions, CRAs are expected to proactively track all important changes relating to the client companies in order to yield timely and accurate ratings. It is reiterated that CRAs are required to ensure prompt and accurate rating action.

Accordingly, the following clarifications in respect of monitoring mechanism, disclosure norms and timelines are being brought to the attention of CRAs for compliance. click here

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