Credit Rating Agencies would have to fetch a “No Default Statement” from companies at the end of every month, where the company needs to state that it hasn’t delayed on any Interest and Principle Payments for the previous month. In case of any data discrepancies or delay in producing this to the Credit Agencies within seven days, SEBI has instructed the Agencies to take necessary actions.
The SEBI circular was in response to reports of delays by rating agencies in responding to information regarding payment delays by corporate borrowers.
