SEBI extends deadline for standardised framework implementation by CRAs

Securities and Exchange Board of India (SEBI) on 01st December, 2022 has issues a circular vide notification no. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2022/168  and came out with the Extension of timeline for implementation of Standardized industry classification by CRA in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provisions of Regulation 20 of SEBI (Credit Rating Agencies)

Regulations, 1999, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

SEBI vide Circular No. SEBI/HO/MIRSD/CRADT/CIR/P/2022/42 dated April 01, 2022 advised CRAs to implement standardized industry classification by September 30, 2022. The guidelines were subsequently revised vide Circular No. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2022/134 dated September 30, 2022 and timeline for implementation was extended till November 30, 2022.

  • Key Highlights:
  1. SEBI has extended the deadline till December 15 for credit rating agencies to implement the standardised framework for industry classification.
  • The framework is for rating exercise and research activities.
  • Initially, the deadline was September 30, which was extended till November 30, 2022.
  • In view of representations received from credit rating agencies, it has been decided by SEBI to extend the date of applicability of the standardised industry classification till December 15, 2022.
  • SEBI had advised CRAs to implement standardized industry classification for the purpose of rating exercise, peer benchmarking, research activities including research for Economy, Industries, Companies, etc.

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