Sebi issues guidelines to streamline operations of credit rating agencies

Markets regulator Sebi has issued new guidelines to streamline operations and enhance the ease of doing business for credit rating agencies.

The circular introduces specific timelines for dealing with appeals made by companies regarding rating actions carried out during periodic surveillance of ratings.

These modifications will be applicable, with effect from August 01, 2024, the Securities and Exchange Board of India (Sebi) said in a circular on Thursday.

"In order to promote ease of doing business and bring about uniformity in dealing with appeals, based on consultation with stakeholders, including CRAs (Credit Rating Agencies), it has been decided to provide specific timelines for dealing with appeals made by the issuer in respect of rating actions carried out pursuant to periodic surveillance of ratings," it added.

 

The changes mandate that CRAs communicate ratings to companies within one working day of the rating committee meeting, with an outer limit set to ensure promptness.

Further, companies will have three working days to request a review or appeal of the rating decision, and the dissemination of the press release on the CRA's website and intimation of the same to the stock exchange or debenture trustee must occur within 7 working days of the rating committee meeting.

"CRAs shall continue to maintain records in respect of the said disclosures for a period of 10 years, which may be shared with debenture trustees upon request.

Banking stocks remained under pressure, with Nifty Bank index down nearly 1 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade following reports of the Securities and Exchange Board of India (Sebi), India's market regulator, issued a "show-cause notice" to Hindenburg Research on June 27th, 2024.

The US-based short seller has alleged 'surreptitious aid' by the Sebi to the Gautam-Adani led group and also named a private bank in the Adani-Hindenburg saga.

ALSO READ: Hindenburg receives show cause notice from Sebi over Adani issue

Among the banking stocks, ICICI Bank, IndusInd Bank, IDFC First Bank, Bandhan Bank and Federal Bank from the private sector and Bank of Baroda (BOB), Punjab National Bank and State Bank of India (SBI) from the public sector slipped in the range of 1 per cent to 3 per cent.

Shares of Restaurants Brand Asia soared up to 5 per cent at 113.92 per share on the BSE in Friday’s intraday. This came after the company informed the Indian exchanges about the bulk deal executed on Thursday. 

According to data from the BSE website, HDFC Mutual Fund has acquired 4.55 million shares of Burger King’s parent company, representing approximately 0.90 per cent of its total paid-up capital.

The fund purchased shares of Restaurant Brands Asia at Rs 110.46 per share on Thursday, amounting to a total investment of Rs 50.26 crore.

According to reports, HDFC Mutual Fund entered into the small-cap company's shares while global investor Goldman Sachs India Equity Portfolio was reducing its stake. 

Bajaj Auto CNG bike launch: Shares of Bajaj Auto gained 2 per cent to Rs 9,660 per share on the BSE in Friday's intraday trade. The rise in Bajaj Auto's share price came after the two-wheeler major launched the world's first CNG bike.

At 3:00 PM, Bajaj Auto share price was at Rs 9,655 per share, up 1.9 per cent, as against 0.57 per cent fall in the benchmark BSE Sensex.

On Friday, July 5, 2024, Bajaj Auto launched the world's first CNG motorcycle-Freedom 125. The starting price of Bajaj Auto's first-ever CNG bike has been set at Rs 95,000 (ex-showroom, India), and  will go up to Rs 1.10 lakh. It said the CNG-based Bajaj Freedom 125 bike will be available in three variants.

The CNG bike, Bajaj Auto said, will have flexible/switchable fuel options between petrol and CNG.

"Bajaj Freedom 125 will be powered by a 125cc single-cylinder engine,  which can run on both petrol and CNG  and generates  9.5 PS of maximum power and 9.7 Nm of peak torque. The model will have a range of 300 kilometers," said Rajiv Bajaj, managing director of Bajaj Auto.

In March, Bajaj had said that in CNG bikes, carbon dioxide emission is down by almost 50 per cent, carbon monoxide by 75 per cent, and non-methane hydrocarbons by 90 per cent when compared to gasoline. He had also said it would effectively double mileage or halve the cost of fuel.