Millennium Post

SEBI asks India Inc not to pan credit agencies

SEBI chairman U K Sinha on Wednesday said corporates should not draw credit rating agencies, also overseen by the capital markets regulator, into litigation and let the due process of assessment prevail.

‘My message to corporates is that if they are raising money, they should be willing to follow the rules of the game,’ Sinha told reporters on the sidelines of a securitisation summit.

'I am also sure that all the boards of the country are aware that if SEBI is regulating a particular industry and a particular instrument is looked by SEBI, I hope that they will let the due process prevail rather than coming in the way of this,' he said.

Rating agencies had held a meeting with SEBI on Tuesday wherein they are understood to have told the capital markets regulator about the difficulties in business they are facing because of litigation from some corporates.

The rating agencies' concern emanate as corporates, which are mandated to rate themselves, tend to pull an agency into litigation because of their discomfiture with the rating and commentary thereof.

When asked if SEBI is contemplating to come up with some guidelines on the issue, Sinha said that there are many regulations regarding rating agencies and if need be, SEBI will look into revising it.
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