Considering the outbreak of Covid – 19 and the 21 day lockdown in India, the Reserve Bank of India (RBI) had permitted moratorium on loan servicing, working capital facilities etc. for a period of three months. The same was allowed vide Notification No. RBI/2019-20/186, dated March 27, 2020.
In view of the same, SEBI provided relaxations in the SEBI (Credit Rating Agencies) Regulations, 1999. A circular has been issued wherein the Credit Rating Agencies (CRA) will look into the delay in payment of interest/principle of the loan and the reason for such delay. If the delay has occurred due to the lockdown or the procedural factors, the non-payment will not be considered as default event by the CRA and the same has to be made through appropriate disclosures.
SEBI has also provided relaxations pertaining to the issuance of Press Releases and Disclosures to be made by the CRA’s annually and semi-annually.