SEBI Revises Compliance Deadlines for Credit Rating Agencies

In a significant move to standardize rating processes and publication protocols, the Securities and Exchange Board of India (SEBI) has updated the rules for Credit Rating Agencies (CRAs). The new regulations replace the previous 'days' with 'working days' as the standard for compliance deadlines.

Key Changes Under the Revised Rules

Press Releases on Rating Actions: CRAs are now required to publish press releases on rating actions within seven working days, a shift from the earlier seven calendar days requirement.

Delays in Debt Servicing: The timeline for reviewing ratings in cases of delays in debt servicing has been adjusted to two working days from the previous two calendar days.

‘Issuer Not Cooperating’ Tag: If an issuer fails to submit a no-default statement (NDS) for three consecutive months, CRAs must now tag the ratings as "issuer not cooperating" within five working days, reduced from seven calendar days.

Debt Servicing Confirmation: For debt servicing confirmation, CRAs must follow up within one working day after the due date and issue a press release within a stricter timeline of two working days if no response is received.

The regulator has emphasized that these changes are effective immediately and aim to address operational inefficiencies for credit rating agencies.