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BankingNABARD / RBI

Rating Agencies Seek Rules for Unlisted Debt Ratings

23 June 20251 min read
BANKING & FINANCERating AgenciesSeek Rules forUnlisted DebtRatings23 June 2025safalsetu.com

Why in the news

Rating agencies want the government to settle who governs ratings of unlisted instruments.

Key facts

  • Instruments: PTCs and unlisted corporate bonds.
  • 2023: SEBI asked CRAs to obtain an NOC from RBI to rate unlisted papers.
  • RBI allowed ratings of Certificates of Deposit but is silent on PTCs and unlisted bonds.

Why it matters

  • PTCs help NBFCs and banks free liquidity from retail loan pools.
  • Ratings guide pricing and risk evaluation; banks prefer rated paper for lower provisioning.

Exam angle

  • Regulators in the overlap: SEBI and RBI.

Test yourself

1. Rating agencies in India sought regulatory clarity on rating unlisted debt worth over how much?

The unlisted instruments are worth over ₹1 lakh crore.

2. SEBI required CRAs in 2023 to obtain an NOC from which body to rate unlisted papers?

SEBI asked for an NOC from RBI.

3. Which unlisted instrument did RBI allow CRAs to rate, per the notes?

RBI allowed ratings for CDs but is silent on PTCs and unlisted bonds.

This topic is part of Daily Current Affairs 22 & 23 June 2025 (14 topics).

All topics of the dayDay quizJune 2025

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