Debt Recovery Guru - Debt Collection India Portal, Latest Indian Credit Industry News , Jobs, Events, Directory

Jan 18th
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home News


Rating agencies should not be dragged to the court: Sinha

Rating agencies should not be dragged to the court: Sinha
Sebi Chairman U K Sinha today said corporates should not draw credit rating agencies, also overseen by the capital markets regulator, into litigation and let the due process of assessment prevail. "My message to corporates is that if they are raising money, they should be willing to follow the rules of the game," Sinha told reporters on the sidelines of a securitisation summit here.

"I am also sure that all the boards of the country are aware that if Sebi is regulating a particular industry and a particular instrument is looked by Sebi, I hope that they will let the due process prevail rather than coming in the way of this," he said.

Rating agencies had held a meeting with Sebi yesterday wherein they are understood to have told the capital markets regulator about the difficulties in business they are facing because of litigation from some corporates.

The rating agencies' concern emanate as corporates, which are mandated to rate themselves, tend to pull an agency into litigation because of their discomfiture with the rating and commentary thereof.

According to rating agencies, litigation expenses eat into the fees it charges from the particular corporate for the rating. When asked if Sebi is contemplating to come up with some guidelines on the issue, Sinha said that there are many regulations regarding rating agencies and if need be, Sebi will look into revising it. "India is one of first countries, where the credit rating agencies are regulated. Off and on, we issue guidelines, our aim is to protect the investor interest," he said.

On securitisation, Sinha said one of the reasons why it is not picking up is due to taxation issues and said the government should clarify on some problems. "Asset management companies have received notices that they have to pay taxes. This is matter on which government has to clarify what the final position is. One of the reason why securitisation is not doing good is due to taxation issues," he said.

Sebi will facilitate with any changes in the regulatory requirements, if needed, Sinha added. On the growing concerns over high frequency algo trades, Sinha said Sebi has recently come up with guidelines disincentivising such activity.



Loan growth of banks for FY12-13 may fall short of RBI projection

Indian banks' advances rose at a much slower pace in the first half of the current fiscal year compared with the same period last year as the economy slowed, with bankers...

MSME looking for revision in norms

The ongoing economic slowdown is not just hurting big corporate houses, but also smaller firms.
Growth in credit flow to small and medium enterprises (SMEs) has, in fact,...

SEB loan recast: Moily says issues to be sorted out

Union Corporate Affairs and Power Minister Veerappa Moily said any issues pertaining to recent loan recast of the state distribution companies will be sorted out.


Suzlon headed for CDR, lenders grapple with terms

Lenders to the debt-laden wind energy company, Suzlon Energy Ltd, have begun examining the option of taking the company to corporate debt restructuring (CDR) for recast o...

Deccan Chronicle declared NPA by Axis Bank

DCHL Group, publisher of Deccan Chronicle, Asian Age, Financial Chronicle and Andhra Bhoomi, had been in news for all the wrong reasons. The group has not been able to se...

Credit quality of PSBs remained muted in Q2: Barclays

New Delhi: Indian state-run commercial banks, which contribute 70% to the total banking business, may report subdued credit growth in the fiscal second quarter (Jul-Sep) ...

Why education loan schemes are not ticking

The origin of the education loan scheme in India dates back to 1992. The scheme has evolved through contributions from the Finance Ministry, Indian Banks’ Association and...

DRAT revised penalty imposed on AIP Rolling Mills of Ludhiana

The case relates to auction of a 2,500 sq yard property comprising of a factory and surrounding land in the possession of the State Bank of India, Chandigarh.
The auction...
Page 3 of 139


Advertise on Debt Recovery Guru. Check out options by clicking here!


Advertise on Debt Recovery Guru. Check out options by clicking here!


Follow DRG



How is the Debt Recovery Industry's Reputation in India?