Sebi eases 90-day curing period norm for defaulting firms post-downgrade

Raters can move company to speculative grade on case-by-case basis

The Securities and Exchange Board of India (Sebi) has relaxed the 90-day required curing period following a default rating, as such cases are likely to rise in the wake of the Covid-19 pandemic.

Under the existing framework, after a default is cured and the payments regularised, a rating agency shall generally upgrade the rating from default to non-investment grade (speculative grade) after a period of 90 days, based on a satisfactory performance by the company during this period.

In its circular, Sebi said rating agencies may deviate from the period of 90 days on a case-to-case basis, subject to rating agencies framing