The move comes just months after Sebi set tougher rules, including mandating ratings agencies to more closely monitor whether issuers are meeting their debt obligations and increasing disclosure requirements. The move comes just months after the watchdog set tougher rules, including mandating ratings agencies to more closely monitor whether issuers are meeting their debt obligations and increasing disclosure requirements. The new proposals by the Securities and Exchange Board of India (Sebi) include requiring a ratings agency to hive off any other business it does, apart from assigning ratings and economic or financial research, to a separate entity. Sebi said that a ratings organisation should have a minimum net capital of Rs50 crore ($7.84 million) before it is accredited as a credit ratings agency. Sebi also proposed that a ratings agency should not hold more than 10% shares or voting rights and representation on the board of a rival.

Source: Mint September 09, 2017 04:07 UTC