Don't consider repayment delays as default: Sebi to credit rating agencies

The relaxation has been extended till the period of moratorium given by the RBI

Markets regulator Sebi on Monday asked credit rating agencies not to consider as default any delay in payment of interest or principal loan amount arisen solely due to the nationwide lockdown conditions.

The move follows a three-month moratorium on payment permitted by the Reserve Bank of India to mitigate the burden of debt servicing due to disruptions caused by the coronavirus pandemic and to ensure continuity of viable businesses.

In a circular, the Securities and Exchange Board of India (Sebi) said a differentiation in treatment of default, on a case to case basis, needs to be made as to whether such default