CURRENT AFFAIRS

2023

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Credit rating agencies require to report to SEBI their compliance with norms as ratified by their boards of directors within how many months from the date of applicability?

A	3 months
B	2 months
C	1 month
D	9 months

Explanation:

Detailed explanation-1: -Some examples of CRAs in India include, Crisil, and CARE, among others. Now, with this new guideline coming into effect from January 1, 2023, CRAs will have to report on their compliance as ratified by their respective board of directors to Sebi within one quarter from the date of applicability of the circular.

Detailed explanation-2: -What is the validity period of a credit rating? A rating is expected to remain valid until the rated debt obligation is fully paid or the rating is withdrawn and is subjected to a periodic review to ascertain the validity of the same.

Detailed explanation-3: -Pursuant to the consultation with the CRAs, standardised symbols and their definitions have been devised for issuer rating or corporate credit rating, the Securities and Exchange Board of India (Sebi) said in a circular, adding that the new guidelines will come into force from January 1, 2023.

Detailed explanation-4: -Currently, there are 7 leading Credit Rating Agencies (CRAs) in India, such as CRISIL, ICRA, CARE, Acuite Ratings & Research, Brickwork Ratings India Pvt. Ltd.

There is 1 question to complete.