SEBI tightens disclosure norms for rating agencies

New Delhi, June 13

Market regulator SEBI on Thursday came out with strict disclosure norms for credit rating agencies wherein they will be required to provide the probability of default for various rated instruments.

The move comes against the backdrop of rising instances of debt defaults and concerns over the role of credit rating agencies in assessing the possible risks. Credit rating agencies have also come under the scanner in the IL&FS case.  Issuing guidelines for enhanced disclosures by CRAs, the watchdog has called for having a uniform Standard Operating Procedure in respect of tracking and timely recognition of default. PTI