The Securities and Exchange Board of India (SEBI) has taken measures to transform the credit ratings industry. The latest part of this was to give agencies access to private information about clients’ debt.
The data is about clients’ existing and future debt. The reason for this is that the regulator wants to empower the companies in this sector to quickly identify risks and potential defaults, Reuters reports.
Credit ratings agencies have previously had problems identifying defaults in time, which has caused sudden downgrades and withdrawals of ratings in the past. The agencies has cited a lack of information for these occurrences. It is this that the regulator now tries to fix.
Moreover, SEBI has eased several regulations for foreign portfolio investors (FPIs), including simplifying registration procedures.
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