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Sebi eases norms for rating agencies amid disruptions caused by Covid-19

The relaxation is being given for three months, in line with the RBI's moratorium

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Market participants have called it a timely move, but downgrades could still continue

Jash Kriplani Mumbai
The fear of high intensity of rating downgrades — with over Rs 2.59 trillion worth of debt papers being downgraded in February — was allayed to some extent on Monday, with the Securities and Exchange Board of India (Sebi) temporarily relaxing norms for rating agencies, in light of the operational disruptions caused by Covid-19. 

The markets regulator issued a circular stating that after the Reserve Bank of India’s (RBI’s) move to provide moratorium to banks on classification of non-performing assets (NPAs), rating agencies should also use their discretion to check if a default was solely on account of the lockdown or

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First Published: Mar 31 2020 | 1:10 AM IST

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