SEBI Introduces Streamlined Guidelines for Credit Rating Agencies

The Securities and Exchange Board of India (SEBI) has announced new guidelines to enhance operations and ease business for credit rating agencies (CRAs). Effective from August 1, 2024, these guidelines set specific timelines for rating appeals and disclosures, aiming to improve uniformity, compliance, and investor protection.

The Securities and Exchange Board of India (SEBI) has unveiled a new set of guidelines designed to streamline operations and enhance the ease of doing business for credit rating agencies (CRAs). Effective August 1, 2024, these regulations usher in specific timelines for managing appeals related to rating actions carried out during periodic surveillance.

According to SEBI's circular issued on Thursday, CRAs are now mandated to communicate ratings to companies within one working day of the rating committee meeting. Additionally, companies have a three-day window to request a review or appeal of the rating decision. Press releases outlining rating actions must be disseminated on the CRA's website and intimations sent to stock exchanges or debenture trustees within seven working days.

To ensure transparency and compliance, records of all disclosures will be maintained for ten years and updated daily for non-cooperative issuers. These measures will be monitored through half-yearly internal audits, reflecting SEBI's commitment to investor protection and regulatory development in the securities market.