“There may be short-term disruption, if any, but in the long run, it would be strongly credit positive for the market. “For banks, it means that risk of provisions rising is higher, which will also increase the burden on them. "He said Sebi’s order just reiterates what always had to be followed but the rating agencies did not do it. It has also asked listed companies to inform bourses in case of a loan default Chhatwal explained that the failure by a company to send an NDS every month may not mean that rating companies downgrade a bond or a loan of that company immediately. NDS will be one of the inputs for taking rating action,” he said.

Source: Economic Times August 06, 2017 17:26 UTC