Measures for Ease of Doing Business for Credit Rating Agencies (CRAs) – Timelines
Summary
This circular modifies specific timelines in the Master Circular for Credit Rating Agencies from calendar days to working days. The changes apply to the publication of press releases, rating reviews following payment delays, and the tagging of ratings as INC due to non-submission of No-default Statements. These measures aim to promote ease of doing business and uniformity in dealing with rating reviews.
Text
CRAs shall publish on their website press release regarding the rating action (including reiteration of existing rating), if warranted, immediately, but not later than 7 working days of occurrence of the said event.
In case there have been delays in the payment of interest/ principal by the Issuer, the Issuers shall state the same in this statement and the CRA shall promptly conduct a rating review and disseminate the rating action through Press Release within 2 working days of receipt of such statement.
CRAs shall follow a uniform practice of three consecutive months of non-submission of No-default Statement (NDS) ... as a ground for considering migrating the ratings to INC and shall tag such ratings as INC within a period of 5 working days of three consecutive months of non-submission of NDS.
In case no confirmation of servicing of debt obligation by the Issuer is received by the CRA from the Debenture Trustee within 1 working day post the due date, the CRA shall immediately follow up with the Issuer for confirmation of payment. In case no response is received from the Issuer within 2 working days of such communication, the CRA shall issue a Press Release...
The circular shall be applicable with immediate effect.
This circular is issued with the approval of competent authority, in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 20 of CRA Regulations...
Source: SecMarx — Measures for Ease of Doing Business for Credit Rating Agencies (CRAs) – Timelines. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.