The Securities and Exchange Board of India (Sebi) has tweaked the framework around ‘sharp rating actions’ and also fine-tuned the policy for dealing with non-cooperating issuers for credit rating agencies (CRAs).
Sharp rating action is when the credit rating of an issuer gets downgraded in a very short time period. This often leaves investors in the dark or provides them with little time to react. Meanwhile, non-cooperating issuers are those who drag their feet when it comes to providing adequate and timely information to rating agencies. This makes it challenging to assess and monitor their rating.
“A CRA shall disclose a sharp