SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/158 dated 02.09.2020

RBI vide a circular dated 06.08.2020 has permitted the lending institutions to extend the resolution facility to borrowers having stress on account of Covid19. In the said circular, RBI has allowed all lenders of the borrower to sign the Inter Creditor Agreement (“ICA”) for resolving the stressed assets. In light of the same, SEBI has decided that if the stress created on the borrower is due to the pandemic, the borrower may sign an ICA for resolving the stressed assets. Credit Rating Agencies also may choose to not downgrade ratings of borrowers if they are of the view that the same is solely due to the pandemic. These modifications will be in place till December 31, 2020 at least.