Friday, May 17, 2024
The move follows a three-month moratorium on payment permitted by the RBI to mitigate the burden of debt servicing, due to disruptions caused by the Coronavirus pandemic and to ensure continuity of viable businesses.
Markets regulator SEBI has asked credit rating agencies (CRAs) not to consider as default any delay in payment of interest or principal loan amount arising solely due to the nationwide lockdown conditions.
The move follows a three-month moratorium on payment permitted by the RBI to mitigate the burden of debt servicing, due to disruptions caused by the Coronavirus pandemic and to ensure continuity of viable businesses.
In a statement issued on 30.03.2020, SEBI said:
"Based on its assessment, if the Rating Agency is of the view that the delay in payment of interest/principal has arisen solely due to the lockdown conditions creating temporary operational challenges in servicing debt, the same may not be recognized as default".
SEBI also granted a further extension of 30 days to the CRAs for making annual and semi-annual disclosures on its website for the period ended March 2020.
Earlier last week, SEBI had announced relaxation of compliance norms for listed entities with regard to filing of fourth quarter and annual earnings.
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