SEBI Issues Norms for Standardization of Rating Scales

Current Context: The Securities and Exchange Board of India (SEBI) issued a set of fresh norms regarding the standardization of rating scales used by Credit Rating Agencies (CRAs).

• The norms were issued according to Section 11(1) of the SEBI Act 1992 and Regulation 20 of SEBI (CRA) Regulations 1999.
• The norms will be applicable from 01 January 2023.
• SEBI issued the norms with the objective to:

1. protect the interest of investors
2. promote development in the securities market

• The monitoring of implementations of these norms will be carried out under SEBI (CRA) Regulation through half-yearly internal audits.
• SEBI is a Government of India-owned regulatory body that was established in 1992 with its headquarters in Mumbai, Maharashtra. The current Chairperson of the regulatory body is Madhabi Puri Buch.

Question:

Q.1 Who issued the norms regarding the standardization of rating scales used by Credit Rating Agencies (CRAs)?
a. SEBI
b. NPCI
c. RBI
d. NITI Aayog