IndiaCatalog.com
India News
Search Web Directory
News Home
Sebi to meet rating agencies on faster access to default data
Posted on 14th February 2018
MUMBAI: Capital market regulator Sebi will meet credit rating agencies this week to explore ways to have quicker access to information on loan defaults by corporates. With the Reserve Bank of India (RBI) having so far refused to share the sensitive information beyond the banking industry, Sebi is keen that all rating agencies take membership of credit information companies (CICs) to obtain default data that banks have to report to CICs.

Many corporates as well as banks are reluctant to share default information with rating agencies. The only agency that receives the data on a daily basis is Central Repository of Information on Large Credit (CRILC), a RBI controlled entity, which only gives banks (but not other lenders and market participants like NBFCs) access to the data.

Compared to this, CICs typically come to know about defaults after a month or a fortnight.

“The regulator may discuss ways to improve the quality of data, its robustness, whether frequency can improve and how rating agencies can use the information. When a loan is overdue for a day (described as SMA-0), banks will come to know about it immediately. However, if the company services the overdue loan interest a week later and regularises the loan account, it will not show up as a’default’ when information is passed on to CIC and subsequently to rating agencies,” said an industry official .

According to stock exchange listing guidelines, publicly traded companies are required to immediately share information on default on debt instruments like debentures and bonds. But, such disclosures are not mandatory for default on loans.

Last year, Sebi had asked rating agencies to explain the reasons that lead to sudden downgrade of RCom debt securities and loans by several notches and whether investors of the troubled telco could have been alerted through early rating actions. After rating agencies spelt out that they come to know of loan defaults only after two to three months – with neither banks nor corporates cooperating – Sebi flagged off the importance of immediate dissemination of default information. The central bank, however, felt that disclosing SMA-0 data could further destabilise the borrower.

In banking parlance, loans are categorised as SMA-0 when interest or principal is overdue for less than a month; SMA-1 when payment is overdue for less than 2 months but more than a month; and SMA-3 when it is overdue for 2-3 months. Rating agencies say they can do a meaningful job only when information is received soon after there is a default.

Related Companies: Securities and Exchange Board of India ( SEBI )   

Other Latest News
HDFC Bank may rely on Indian market for $2.3 billion share sale
Posted on 18th June 2018
Mumbai: HDFC Bank Ltd, the world’s most expensive major lender, is considering relying entirely on the Indian market for a share sale that could raise as much as Rs 15,500 crore ($2.3 billion), people with knowledge of the matter said.

The Mumbai-based bank is weighing seeking all the capital through a qualified institutional placement in India, rather than its usual practice of splitting the fund-raising between an offering of local stock and a sale of American depositary receipts, according to the people.


Salman Khan’s ‘Race 3’ crosses Rs 100 crore milestone over opening weekend
Posted on 18th June 2018
New Delhi: The Salman Khan box office charm shows no sign of fading. The actor’s latest festival release Race 3 crossed the Rs 100 crore mark over its opening weekend, making Rs 106.47 crore in domestic box office collections. The action thriller has emerged as the second highest opening weekend earner of the year so far after period saga Padmaavat that had made Rs 114 crore, but it had a five-day extended weekend compared to Race 3’s three days.

Sebi plans to amend takeover regulations
Posted on 18th June 2018
New Delhi: Securities and Exchange Board of India (Sebi) is likely to change certain provisions in the takeover regulations, including those pertaining to revision of open offer price, a senior official said.

The watchdog’s move comes after public consultations on a discussion paper about review of SAST (Substantial Acquisition of Shares and Takeovers) Regulations.


Sensex slips over 30 points as Asian shares skid on escalating trade war concerns
Posted on 18th June 2018
Indian stock markets opened on a lower note on Monday following weak Asian peers after trade war concerns escalated between two major global economies. The BSE Sensex slipped 38.51 points to a low of 35,585.73 points during early trade. The Nifty50 of the National Stock Exchange fell around 10 points. Out of 1,166 trading companies on the BSE, 558 advanced as compared to 556 declines indicating a slightly bullish trend in the market.

More trouble for Vijay Mallya, Enforcement Directorate files fresh chagesheet against Kingfisher boss
Posted on 18th June 2018
In more trouble for liquor baron Vijay Mallya, the Enforcement Directorate (ED) has filed a fresh chargesheet against him and his companies on charges of money laundering and allegedly cheating a consortium of nationalised banks to the tune of Rs 6,027 crore..

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Sebi to meet rating agencies on faster access to default data
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Sebi to meet rating agencies on faster access to default data

Most Read News

Hyundai crosses 8 mn cumulative production milestone in India

HDFC 5th biggest consumer financial services company globally: Forbes

Ashok Leyland to merge LCV units with itself, files for regulatory nods

Markets applaud Infosys on its silver jubilee, surges 23% on BSE in 2018

Reliance Industries hits new high, gains 10% in 3 weeks

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement