The Securities and Exchange Board of India (Sebi) plans to tighten regulations for credit rating agencies by ensuring that rating processes are insulated from business decisions, said two people with direct knowledge of the matter, including a Sebi official.
The capital markets regulator will also likely allow for suspension of ratings, they said, declining to be named.
“Sebi had been consulting with credit rating agencies to ensure that the rating processes have increased accountability and transparency. A discussion paper with proposed amendments to credit rating agency regulations would be released by the end of this year,” said the official cited above.
