CIRCULAR
SEBI/HO/DDHS/DDHS-PoD-3/P/CIR/2024/97 July 04, 2024
To,
All Registered Credit Rating Agencies (CRAs),
Dear Sir/ Madam,
Sub: Measures for Ease of Doing Business for Credit Rating Agencies (CRAs) –
Timelines and Disclosures
(Modification to Chapter III of the Master Circular for Credit Rating Agencies
dated May 16, 2024)
1. Para 28.3.3 of the Master Circular for CRAs - SEBI/HO/DDHS/DDHS-
POD3/P/CIR/2024/47 dated May 16, 2024 (“Master Circular”), prescribes the
timeline to be followed by CRAs for dissemination of Press Release on CRA’s
website and intimation of the same to Stock Exchanges/ Debenture Trustees,
pursuant to rating committee meeting in respect of periodic surveillance of ratings.
2. In order to promote Ease of Doing Business and bring about uniformity in dealing
with appeals, based on consultation with stakeholders including CRAs, it has been
decided to provide specific timelines for dealing with appeals made by the issuer
in respect of rating actions carried out pursuant to periodic surveillance of ratings.
Accordingly, Para 28.3.3 shall stand modified as follows:
Periodic surveillance
Scenario Timeline - immediately but not later than
Communication of the rating to the 1 working day* of the Rating Committee
issuer meeting
Request for review/ appeal of rating 3 working days of the Rating Committee
by the Issuer meeting
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Scenario Timeline - immediately but not later than
Dissemination of Press Release on 7 working days of the Rating Committee
CRA’s website and intimation of the meeting
same to Stock Exchange/
Debenture Trustee
* While an outer timeline of 1 working day has been specified, CRAs shall endeavor
to communicate the rating to the issuer on the same day as the Rating Committee
meeting.
3. Para 31.1.2 of the Master Circular is as under:
“An archive of all disclosures should be maintained by CRAs on their website, for
at least 10 years. This also includes ratings press releases by CRAs”.
However, the disclosures mentioned below shall be made as per the period/
frequency specified for the respective disclosure in the Master Circular:
3.1. Disclosure of list of non-cooperative issuers – Daily (Para 11.6 of the Master
Circular)
3.2. Disclosures in case of rating not accepted by an issuer – 12 months (Para
28.5.2 of the Master Circular)
3.3. Disclosure in case of delay in periodic review – 12 months (Para 28.6 of the
Master Circular)
4. CRAs shall continue to maintain records in respect of the said disclosures for a
period of 10 years, which may be shared with Debenture Trustees upon request.
Further, disclosures in respect of the said aspects shall continue to be made
available by the CRAs on their website under the issuer-specific Press Releases/
Rating Rationale section of the respective issuer, wherever applicable.
5. Applicability: The circular shall be applicable with effect from August 01, 2024.
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6. Monitoring: Monitoring of this circular shall be done in terms of the half-yearly
internal audit for CRAs, mandated under Regulation 22 of the CRA Regulations
and circulars issued thereunder.
7. 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 to protect the
interest of investors in securities and to promote the development of, and to
regulate, the securities market.
Yours faithfully,
Sarika Kataria
Deputy General Manager
Department of Debt and Hybrid Securities
Tel No.022-2644-9411
Email ID - sarikak@sebi.gov.in
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