SEBI is preparing to crack down on Credit Rating Agencies. According to sources, tough decisions can be taken to bring transparency in the functioning of Rating Agencies in the SEBI board meeting to be held on March 1. According to sources, stringent provision can be recommended for rating agencies in this meeting. A proposal to separate the core business from the other business can be brought in the meeting. According to the new proposals, an agency will not be able to rating the creditor and debtor. These steps will be taken to prevent conflict of interest. Disclosure norms of companies can be tough and There is also a sign of change about the payment model.
The decision can also be taken on the Rotation of Rating Agencies in this meeting. There is also a proposal to ban work for a company for 2 consecutive times. According to the issue size, the appointment of agencies is possible. There is also a proposal for appointment of 2 agencies above 100 crores. There is a proposal to appoint 3 agencies above Rs 500 crores. Let us know that there are only seven rating agencies in the registered country of SEBI, including CRISIL, CARE, India Ratings and IKRA.