The Securities and Exchange Board of India vide its notification dated 1st April 2022 has extended the timeline for implementation of Standardisation of Ratings Scales Used by credit rating agencies.
SEBI in its earlier circular, advised the credit rating agencies to either align their rating scales with the rating scales prescribed under the guidelines of respective financial sector regulator or authority in terms of Regulation 9(f) of SEBI (Credit Rating Agencies) Regulations, 1999, or in absence of the same, follow rating scales prescribed by the Board vide circular dated June 15, 2011, June 13, 2019, or any other circular issued by the Board from time to time, by 31st March 2022.
However based on the Representation received from credit rating agencies requesting for extension of the date of applicability of the above provisions, it has been extended till 30th June 2022 instead of 31st March 2022.
Therefore the Credit rating agencies shall ensure compliance with the above provisions of the on or before June 30,2022.
