New Delhi. Stock market regulator SEBI has revised the time limit for credit rating agencies by introducing compliance deadlines in ‘working days’ instead of ‘days’. The Securities and Exchange Board of India (SEBI) in a circular announced changes in the rules for CRAs aimed at standardizing the rating process and publishing protocols.
These changes have been made based on the recommendations of a working group on credit rating agencies. The working group had highlighted the challenges arising from the existing timelines, especially on non-working days.
“One of the recommendations of the CRA Working Group on Ease of Doing Business relates to amendment in the approach for specifying timelines from ‘days’ to ‘working days’,” Sebi said.
Under the revised rules, credit rating agencies are required to issue a press release on rating actions within seven working days of the occurrence of an event, which was earlier seven calendar days. Similarly, the timeline for review of ratings in cases of delay in debt servicing has been adjusted from two calendar days to two working days. Also, Sebi has extended the timeline for marking the rating as ‘issuer not cooperating’ if the non-default statement or ‘NDS’ is not submitted for three consecutive months to five working days instead of seven calendar days.
Let us tell you that the Securities Exchange Board of India issues new guidelines from time to time to maintain transparency in the stock market and protect the interests of investors. Apart from this, SEBI also takes action to impose fines on brokers or big companies carrying out illegal activities in the stock market. Recently, in the case of front running, SEBI has imposed fines on many big investors and brokers, and has also banned them from working in the stock market.
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