Sebi Streamlines CRA Timelines with 'Working Days' Rule

Sebi revises timelines for credit rating agencies by changing compliance deadlines to 'working days' instead of 'days.' This aims to simplify protocols, aligning review and publication processes with business operations. New rules mandate quicker publication of press releases and adjustments in rating reviews.

Sebi, the capital markets regulator, has announced a new rule altering the timeline compliance framework for credit rating agencies by replacing 'days' with 'working days' as the standard metric.

The changes, unveiled in a circular issued on Tuesday, seek to standardize rating processes and publication protocols, addressing challenges identified by a working group on credit rating agencies (CRAs). These steps are expected to mitigate issues arising from existing timelines, especially during non-working days.

Effective immediately, the revised rules require CRAs to publish press releases on rating actions within seven working days. Additionally, the timeframe for confirming an issuer's debt servicing has been reduced, and ratings linked to uncooperative issuers must be flagged within five working days, refining operational efficiency for CRAs.

(With inputs from agencies.)