Guidelines for enhanced disclosures by CRAs issued by SEBI

Jun 14, 2019 | by Avantis RegTech Legal Research Team

The Securities and Exchange Board of India (SEBI) on June 13, 2019, has issued guidelines for enhanced disclosures by Credit Rating Agencies (CRAs) to enhance the rating standards in order to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

 The following disclosures are:

1. Computation of Cumulative Default Rates (CDR)

2. Introducing Probability of Default (PD) benchmarks for CRAs

3. Rating symbol for Instruments having explicit Credit Enhancement feature

4. Disclosure of rating sensitivities in press release

5. Disclosure on liquidity indicators

6. Tracking deviations in bond spreads

[Circular No. SEBI/HO/MIRSD/DOS3/CIR/P/2019/70]

Click here to download the Circular. 




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