 "loans")
Credit-rating agencies (CRAs) have approached the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI), raising the red flag over the new norms on disclosures of bank loan defaults by listed companies.
Sources said CRAs highlighted the differential disclosure norms for bond and bank-loan defaults could lead to information asymmetry and affect the rating process, leaving scope for manipulation.
At present, any default of interest or principal repayment in the case of bonds is reported immediately. However, in the case of bank loans, companies are given a 30-day grace period before the disclosure norms kick
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