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Monday, December 23, 2024 | 06:13 PM ISTEN Hindi

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Sebi tightens governing norms for rating agencies; CEOs can't be on panel

The latest steps are to reduce conflict of interest situations at Credit rating agencies

rating firms
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Samie Modak Mumbai
The Securities and Exchange Board of India (Sebi) on Monday tightened the governance and accountability norms for credit rating agencies (CRAs).

Under the new norms, the managing director and chief executive officer (MD & CEO) of a CRA will be barred from being a member of the rating committee. Further, Sebi has said the rating committees of a CRA will report to the chief ratings officer (CRO) and not the MD & CEO.

The latest steps are to reduce conflict of interest situations at CRAs. Experts said the new norms will help create a Chinese wall between individuals who are responsible to

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