Rating agencies will now have to disclose the probability of defaults : Sebi

Credit rating agencies will now have to disclose the probability of default for the instruments they rate and also clearly state the sensitive factors that could impact the credit worthiness of the entity.

Further, rating agencies will have to adopt a standardised terminology to disclose liquidity indicators like liquid investments, access to credit and cash flows among other factors while rating an instrument.

These are part of the enhanced disclosure guidelines introduced by the Securities and Exchange Board of India (SEBI) for credit rating agencies (CRA).

RBI to infuse Rs 12,500 crore into the financial system through bond purchase

The Reserve Bank of India said Thursday said it will infuse Rs 12,500 crore into the financial system through bond purchases on June 20.

The decision has taken based on a review of the evolving liquidity conditions and assessment of the durable liquidity needs going forward, the central bank said in a statement.

The purchase of government securities under the Open Market Operation (OMO) for Rs 125 billion (Rs 12,500 crore) will be conducted on June 20, 2019.