FSDC panel discusses stressed assets market, rating companies

INSUBCONTINENT EXCLUSIVE:
Kolkata: Promotion of stressed asset markets and the role of credit rating firms remained the focus for the Financial Stability and
Development Council (FSDC) at the Friday meeting of its sub-committee in Mumbai. The FSDC sub-committee, chaired by RBI Governor Shaktikanta
Das, also discussed issues related to financial frauds, audit standards and more effective monitoring of group exposures. The role of credit
rating firms has been under regulatory scanner after a spate of defaults by highlyrated borrowers, especially nonbanking finance companies
The sub-committee also deliberated on revisiting the framework for early warning signals, the Reserve Bank of India (RBI) said in a
statement. Banks have been facing challenges in selling stressed assets since the market needs more depth
The committee, in the presence of corporate affairs secretary Injeti Srinivas, economic affairs secretary Atanu Chakraborty, and chief
economic adviser Krishnamurthy Subramanian, has discussed measures to promote interest and competition in stressed asset markets.