Move aims at enabling rating agencies to have timely information on the default of an entity
The SEBI in its board meeting held on 21 August 2019 has amended SEBI (CRA) Regulations, 1999 to incorporate an enabling provision in the rating agreement between the CRA (Credit Rating Agencies) and the issuer/ client, providing explicit consent to the CRA to obtain details of the existing and/ or future borrowing of the issuer.It also includes details about its repayment and any delay or default in servicing of such borrowing.
The information can be collected either from the lender or any other statutory/ non-statutory organization maintaining any such information.
The move is aimed at enabling CRAs to have timely information on the default of an entity.
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