SEBI vide Circular dated April 01, 2022, has specified harmonized four-level industry classification framework for Credit Rating Agencies.
A standing committee constituted by SEBI, comprising of representatives from stock exchanges, depositories, and other market participants have examined the existing industry classification structures across sectors have developed the new harmonized structure for adoption by all stakeholders and for all relevant processes/ purposes in the Indian securities market (Classification placed at Annexure A).
The standardized framework will help bring about uniformity in the classifications being used across sectors and in the securities market, credit rating agencies are advised to use this standardized industry classification for the purpose of rating exercise, peer benchmarking, research activities including research for Economy, Industries, and Companies, etc.
The above, mentioned industry classification will be applicable to Credit Rating Agencies w.e.f. October 01, 2022.
Circular Link:
About the Author
