Relaxation from compliance with certain provisions of the circulars issued under SEBI (Credit Rating Agencies) Regulations, 1999 due to the COVID-19 pandemic and moratorium permitted by RBI.

Last updated: 31 March 2020

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The Securities and Exchange Board of India (SEBI) has issued a circular providing temporary relaxations for Credit Rating Agencies (CRAs) in light of the COVID-19 pandemic and the Reserve Bank of India's (RBI) loan moratorium. CRAs may now exercise discretion in recognising defaults if they are solely due to lockdown conditions or the moratorium, and have been granted extensions for press releases and website disclosures.

Securities and Exchange Board of India SEBI/HO/MIRSD/CRADT/CIR/P/2020/53 March 30, 2020 To, All Credit Rating Agencies (CRAs) registered with SEBI Dear Sir/ Madam, Sub: Relaxation from compliance with certain provisions of the circulars issued underSEBI (Credit Rating Agencies) Regulations, 1999 due to the COVID-19 pandemic andmoratorium permitted by RBI. 1. In view of the developments arising due to COVID-19 pandemic and in light of the moratorium permitted by Reserve Bank

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FAQ :

The circular provides temporary relaxations from certain compliance requirements for Credit Rating Agencies (CRAs) due to the COVID-19 pandemic and the moratorium permitted by the RBI.

CRAs may not consider a delay in payment as a default if it is solely due to lockdown conditions causing operational challenges or procedural delays in approving loan moratoriums. This applies to defaults occurring solely due to the lockdown or moratorium.

Yes, CRAs are granted relaxation from timelines for issuing press releases and have an extension of 30 days for making annual and semi-annual disclosures on their website for the period ended March 2020.

The relaxation regarding the recognition of default is extended till the period of moratorium by the RBI. Extensions for disclosures are also provided.

This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 20 of the SEBI (Credit Rating Agencies) Regulations, 1999.