Sebi meets heads of rating agencies

Discusses delayed action in recent cases like RCom and possible move to a more efficient system

A worried Securities and Exchange Board of India (Sebi) had met with credit rating agencies earlier this week. According to sources, the regulator discussed changes to the current reporting system, for timelier rating action. Sebi, which also regulates the Rs 19-lakh crore mutual fund space, enquired about the health of debt markets, added the sources.

The move comes after the Reliance Communications (RCom) fiasco, wherein rating agencies downgraded the papers nearly two months after the actual default happened. Currently, rating agencies take action only after depositories confirm a default. This typically takes two to three weeks from the time of