The circular amends paragraph 15 of the Master Circular for Credit Rating Agencies (CRAs), providing...

The circular amends paragraph 15 of the Master Circular for Credit Rating Agencies (CRAs), providing guidance on treatment of technical defaults. It clarifies that in scenarios where non-payment of debt occurs due to reasons beyond the issuer's control, such as failure to remit due to incorrect investor account details or instructions from authorities, CRAs shall verify availability of funds, reasons for failure, and payment into an escrow account. CRAs must furnish details to stock exchanges, depositories, and debenture trustees, who shall disseminate the information. CRAs must sensitize issuers to use penny-drop verification facility to prevent such occurrences. The term "technical default" is omitted from paragraph 15.3, which now covers..... .....

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