Credit rating agencies: Sebi extends deadline for standardised framework implementation

Markets regulator Sebi on Thursday extended the deadline till December 15 for credit rating agencies to implement the standardised framework for industry classification.

The framework is for rating exercise and research activities.

This is the second time that Sebi has extended the timeline to implement the framework. Initially, the deadline was September 30, which was extended till November 30.

In view of representations received from credit rating agencies, it has been decided to extend the date of applicability of the standardised industry classification till December 15, the Securities and Exchange Board of India (Sebi) said in a circular.

Under the guidelines, credit rating agencies will have to implement standardised industry classification for the purpose of rating exercise, peer benchmarking and research activities.

The standardised framework will help bring about uniformity in the classification being used across sectors and in securities market.

Further, Sebi said that monitoring of implementation of standardised industry classification will be done in terms of the half-yearly internal audit for credit rating agencies.

Separately, Sebi came out with an operational circular for listing obligations and disclosure requirements for issuers of listed non-convertible securities, securitised debt instruments and commercial paper.

This has been done for the effective regulation of the corporate bond market and to enable the issuers and other market stakeholders to get access to all the applicable circulars at one place.

Under the new circular, the format for submission of statement indicating the utilisation of issue proceeds of listed non-convertible securities to the stock exchanges, by the listed entities has been included.

Further, the regulator came out with a new format for the review of ratings obtained by the listed entity with respect to its non-convertible securities from credit rating agencies. It has also issued formats for submissions to be made by listed entity to the stock exchanges for interest or dividend or principal.