Latest news with #CRAs
Boston Globe
11-07-2025
- Politics
- Boston Globe
Mass. kids struggling in school need support. Too often, they're being sent to court.
In fiscal year 2024, the state recorded 4,290 Child Requiring Assistance filings, a 6 percent increase from 2022. Petitions from parents, usually filed due to a child running away or being difficult to manage, accounted for close to 60 percent of those petitions in 2024, the report found. Advertisement In some cases, children as young as 6 years old were brought to court to address behavioral or discipline problems, including truancy , the Office of the Child Advocate reported. Petitions associated with children ages 6 to 12 increased by 17 percent from 2022 to 2024. Among the state's counties, Suffolk reported the highest rate of children subjected to the petitions, a possible sign of insufficient resources in the Boston school district, Threadgill said. Advertisement The district did not respond to a request for comment. Families at times are advised to turn to Child Requiring Assistance filings by educators, therapists, or medical providers who don't realize that they are often unnecessary and aren't aware of the power the petitions can give the court. In some cases, a petition can result in the child's removal from the home. Latino children were 3.5 times more likely than white students to have a CRA petition filed against them. Black children were referred to the court system at similar rates to Latino children, the report found. Glenn Koocher, head of the Massachusetts Association of School Committees, expressed concern that Child Requiring Assistance filings, also called CRAs, were more likely to be filed for students in poverty and noted that aggressive immigration enforcement this year was likely to exacerbate existing racial disparities by encouraging children to miss school. 'If you were afraid that your parents are going to get deported, or that your uncles or aunts or cousins are going to get deported...' he said. 'I would think that would make them anxious about going to school.' A 2022 report from the Juvenile Justice Policy and Data Board, a statewide policy evaluation organization that includes representatives from organizations involved in the juvenile justice system, recommended addressing the needs of children subject to CRAs without the court's involvement. Since then, though, the opposite has happened, with petitions initiated by schools growing the most. Petitions due to chronic truancy and habitual misbehavior account for roughly 43 percent of all those filed in 2024, the report stated, an increase of almost 14 percent over two years. Advertisement Families statewide often struggle to obtain from schools the Related : 'The special education system is very complex, the procedures, the process, the regulations that need to be followed,' said Ellen Chambers, founder of SPEDWatch, a Massachusetts activist group for children. 'It is very easy for a school district to pull the wool over a family's eyes.' Related : While the latest report didn't include data on the connection between CRAs and special education needs, the The Massachusetts Association of School Superintendents did not respond to a request for comment. School absences or discipline problems, the kinds of behaviors that are often causes for school-filed CRAs, are also signs a child isn't getting needed educational supports, said Chambers, who also works with families as an adviser appointed by the court through the CRA process. The vast majority of children she connects with through CRAs are disengaged at school due to unidentified disabilities or a lack of special education supports. Advertisement 'They become very, very anxious because they can't keep up with what's going on,' she said. Karrie Conley is the parent of a teenage girl, who she asked not be named, who was the subject of a CRA petition last year in the Acton-Boxborough School District as she dealt with extreme anxiety. 'She was locking herself in the bathroom for four hours at a time,' Conley said. The school's attempts to accommodate the teenager's difficulties understanding math as well as her physical and mental health challenges were inadequate, the mother said. The district withdrew the petition shortly after it was filed, but Conley said the experience only deepened her daughter's antipathy for attending school. Now, she's attending a private school that allows her to learn at home, but she still struggles to manage a full course load, she said. 'I will be lucky if I can get this child to community college when she graduates,' she said. Peter Light, superintendent of the Acton-Boxborough School District, said he couldn't speak about a specific case involving a student but said the district turns to CRA petitions rarely, once or twice a school year. 'We typically work with parents very closely in these cases,' he said. In its report, the Office of the Child Advocate pointed to Advertisement 'A court process is just not going to be the best way to deal with complicated behavioral health situations, educational situations, or family dynamics,' Threadgill said. Jason Laughlin can be reached at
Economic Times
09-07-2025
- Business
- Economic Times
Sebi mulls allowing CRAs to rate instruments outside its regulatory purview
Markets watchdog Sebi on Wednesday proposed permitting credit rating agencies (CRAs) to undertake the rating of financial instruments that may come under other financial sector regulators, even if they have not issued any rating-related guidelines. ADVERTISEMENT Under the current CRA regulations, credit rating agencies are only allowed to rate securities that are listed or proposed to be listed on a stock exchange recognised by Sebi. However, the regulations do not stop CRAs from rating products, securities, or issuers if such ratings are done under the guidelines of another financial sector regulator or any authority specified by Sebi. In its consultation paper, Sebi proposed that CRAs may be permitted to undertake activities that are not regulated by it, subject to certain conditions."CRA may undertake rating of financial instruments, which fall under the purview of any other FSR, provided it shall comply with the regulatory framework, if any, as may be specified by the respective FSR for the matters relating to policy, eligibility criteria, risk management, investor grievance or dispute handling mechanism, inspection, enforcement and claims," Sebi proposed. The regulator suggested that CRAs may undertake only those rating activities that are fee-based and non-fund-based. Additionally, such activities should be carried out strictly on an arm's length basis through one or more Separate Business Units (SBUs), which should be segregated by a Chinese Wall and ring-fenced from Sebi-regulated functions. ADVERTISEMENT The regulator further stated that CRAs should ensure the transfer of all non-Sebi-regulated activities to these separate business units within six months from the date of notification of the SBUs would also be required to establish distinct grievance redressal mechanisms, including escalation procedures, which are separate from those applicable to Sebi-regulated activities. ADVERTISEMENT Moreover, CRAs should maintain independent records within the SBU for such non-Sebi-regulated activities, and the personnel engaged in these functions must be distinct from those involved in Sebi-regulated crossing the Chinese Wall may be permitted for staff, subject to due procedures approved by the Board of Directors and proper documentation. ADVERTISEMENT Notably, this restriction does not apply to key managerial personnel. Sebi also clarified that the minimum net worth requirement of a CRA, as specified under the CRA Regulations, should be protected from any impact arising out of non-Sebi-regulated activities. ADVERTISEMENT A CRA will be required to disclose on its website the list of activities that are not regulated by Sebi, along with a disclaimer clearly stating that Sebi's investor protection mechanisms will not apply to any grievances or disputes related to such activities. This disclosure should also be prominently displayed in rating reports associated with non-Sebi-regulated to undertaking any such activities, the CRA should provide an upfront written disclosure to all relevant stakeholders, including clients, beneficiaries, and counterparties. This disclosure should be included in all engagement letters, contracts, agreements, and business communications, indicating that the activities do not fall within Sebi's regulatory stakeholders should confirm, at the time of engagement, that they understand the nature of the activities, associated risks, and the non-availability of Sebi's investor protection existing and ongoing arrangements related to non-Sebi-regulated activities, CRAs should make the necessary disclosures and obtain acknowledgements from stakeholders. A compliance report on this should be submitted to Sebi within six months of the addition, every CRA undertaking any activity outside the purview of Sebi should submit an undertaking as part of its half-yearly internal audit report, confirming compliance with the specified requirements. This report should be duly reviewed and approved by the CRA's board of has invited public comments on the proposal until July 30, 2025. The move comes in response to representations from industry participants and stakeholders, who have requested that CRAs be allowed to rate financial products and instruments under the purview of other FSRs, even where no rating-related guidelines exist. It was highlighted that such rating activities are closely aligned with CRAs' current business, and allowing them could lead to operational synergies while filling an existing gap in the market.
Mint
09-07-2025
- Business
- Mint
Sebi proposes broadening Credit Rating Agencies' mandate amid regulatory gaps
The Securities and Exchange Board of India (Sebi) has issued a proposal to clarify and expand the scope of activities that Credit Rating Agencies (CRAs) in India can undertake, especially in areas regulated by other financial sector authorities. The proposals are open for public comment till 30 July. Currently, Sebi's rules restrict CRAs to rating securities that are listed or proposed to be listed on recognized stock exchanges. However, CRAs are not barred from rating other financial products if permitted by guidelines from other financial sector regulators (FSRs) like the Reserve Bank of India (RBI) or the Insurance Regulatory and Development Authority (IRDA). The industry pointed out a regulatory gap: financial products under other FSRs lack specific rating guidelines. This has led to confusion about whether CRAs can rate such products, such as unlisted securities. Sebi's new consultation paper seeks to address this ambiguity, responding to feedback from industry stakeholders who believe that allowing CRAs to rate a wider range of products would bring synergies and fill an important gap in the market. Sebi is considering allowing CRAs to rate financial instruments under the jurisdiction of other FSRs, even if those regulators have not issued explicit rating guidelines. However, this expanded role comes with strict conditions designed to protect investors and ensure transparency. CRAs must ensure that the existing non-Sebi-regulated activities are transferred to a separate business unit (SBU) within six months of the new rules coming into effect. Each SBU must have its own grievance redressal mechanism, separate from that for Sebi-regulated activities. SBUs must maintain their own records and employ staff distinct from those handling Sebi-regulated work. Staff movement across the Chinese Wall is allowed only with proper board-approved procedures. The minimum net worth required for a CRA under Sebi regulations must be protected from any risks arising out of non-Sebi regulated activities. CRAs must clearly disclose all non-Sebi regulated activities on their website and in related rating reports, along with a disclaimer that Sebi's investor protection mechanisms do not apply. Market participants, investors and other stakeholders have until 30 July to share their views.
Time of India
09-07-2025
- Business
- Time of India
Sebi mulls allowing CRAs to rate instruments outside its regulatory purview
Markets watchdog Sebi on Wednesday proposed permitting credit rating agencies (CRAs) to undertake the rating of financial instruments that may come under other financial sector regulators, even if they have not issued any rating-related guidelines. Under the current CRA regulations, credit rating agencies are only allowed to rate securities that are listed or proposed to be listed on a stock exchange recognised by Sebi. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo However, the regulations do not stop CRAs from rating products, securities, or issuers if such ratings are done under the guidelines of another financial sector regulator or any authority specified by Sebi. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. In its consultation paper, Sebi proposed that CRAs may be permitted to undertake activities that are not regulated by it, subject to certain conditions. "CRA may undertake rating of financial instruments, which fall under the purview of any other FSR, provided it shall comply with the regulatory framework, if any, as may be specified by the respective FSR for the matters relating to policy, eligibility criteria, risk management, investor grievance or dispute handling mechanism, inspection, enforcement and claims," Sebi proposed. Live Events The regulator suggested that CRAs may undertake only those rating activities that are fee-based and non-fund-based. Additionally, such activities should be carried out strictly on an arm's length basis through one or more Separate Business Units (SBUs), which should be segregated by a Chinese Wall and ring-fenced from Sebi-regulated functions. The regulator further stated that CRAs should ensure the transfer of all non-Sebi-regulated activities to these separate business units within six months from the date of notification of the proposal. These SBUs would also be required to establish distinct grievance redressal mechanisms, including escalation procedures, which are separate from those applicable to Sebi-regulated activities. Moreover, CRAs should maintain independent records within the SBU for such non-Sebi-regulated activities, and the personnel engaged in these functions must be distinct from those involved in Sebi-regulated operations. However, crossing the Chinese Wall may be permitted for staff, subject to due procedures approved by the Board of Directors and proper documentation. Notably, this restriction does not apply to key managerial personnel. Sebi also clarified that the minimum net worth requirement of a CRA, as specified under the CRA Regulations, should be protected from any impact arising out of non-Sebi-regulated activities. A CRA will be required to disclose on its website the list of activities that are not regulated by Sebi, along with a disclaimer clearly stating that Sebi's investor protection mechanisms will not apply to any grievances or disputes related to such activities. This disclosure should also be prominently displayed in rating reports associated with non-Sebi-regulated activities. Prior to undertaking any such activities, the CRA should provide an upfront written disclosure to all relevant stakeholders, including clients, beneficiaries, and counterparties. This disclosure should be included in all engagement letters, contracts, agreements, and business communications, indicating that the activities do not fall within Sebi's regulatory framework. Also, stakeholders should confirm, at the time of engagement, that they understand the nature of the activities, associated risks, and the non-availability of Sebi's investor protection mechanisms. For existing and ongoing arrangements related to non-Sebi-regulated activities, CRAs should make the necessary disclosures and obtain acknowledgements from stakeholders. A compliance report on this should be submitted to Sebi within six months of the notification. In addition, every CRA undertaking any activity outside the purview of Sebi should submit an undertaking as part of its half-yearly internal audit report, confirming compliance with the specified requirements. This report should be duly reviewed and approved by the CRA's board of directors. Sebi has invited public comments on the proposal until July 30, 2025. The move comes in response to representations from industry participants and stakeholders, who have requested that CRAs be allowed to rate financial products and instruments under the purview of other FSRs, even where no rating-related guidelines exist. It was highlighted that such rating activities are closely aligned with CRAs' current business, and allowing them could lead to operational synergies while filling an existing gap in the market.
Time of India
22-06-2025
- Business
- Time of India
Credit rating firms seek govt intervention over regulatory void on ₹1 L cr unlisted debt
Mumbai: Credit rating companies have sought the intervention of ministries of corporate affairs and finance amid an uncertainty over the future ratings of more ₹1 lakh crore of unlisted securities . The rating of these instruments, like corporate bonds and securitised papers, which comprise an integral part of the financial market for debts, has fallen between the cracks of two regulatory authorities. The ambiguity stems from the fact that the Securities and Exchange Board of India (Sebi), the primary regulator for the credit rating agencies (CRAs), has jurisdiction over only listed securities while unlisted debts raised by corporates, including company fixed deposits, are outside the domain of the Reserve Bank of India (RBI). SEBI had last year told rating firms to get a non-objection certificate from RBI for rating the unlisted papers. Since then, the central bank has allowed CRAs to rate certificates of deposits (CDs) - instruments floated by banks to raise short-term funds. But, there is no clarity on ratings of securitised papers like pass through certificates (PTCs) and unlisted corporate bonds . This is where CRAs want the ministries to step in. Issued against a basket of loans and the interest flows from them, PTCs enable lenders like non-bank finance companies as well as banks to convert relatively illiquid loans into marketable papers and create headroom to lend more while letting investors - like corporate treasuries, financial institutions, and fund houses - hold a diversified pool of assets and sometimes generate a higher return. A predominant portion of the outstanding PTCs are unlisted. Under the circumstances, the CRAs are awaiting a signal from the corporate affairs ministry that they can follow the SEBI guidelines on listed securities while carrying out the rating of unlisted securities. Thus, CRAs want to know whether they can continue to use the same rules of default recognition, application of grading scale, disclosures, and issue of press release for unlisted papers as well. The ministry is yet to respond to the letter from the rating industry body. With New Delhi is yet to give the go-ahead, some of the CRAs, in the course of various meetings, have sensitised issuers of unlisted securities as well as some of the investors that ratings of these instruments may have to be withdrawn in the absence of any clarity from the government or regulators. "More so, with SEBI reminding CRAs a few months ago that the issue needs to be sorted out. This could well be a nudge from SEBI to list more securities and thereby promote transparency. However, many issuers refrain from listing either to avoid the compliance and reporting that come with it or strike bilateral deals with investors and do not feel the urgency to list," said an industry official. Many institutional investors may keep away from unrated securities, including banks who save on capital as unrated loans and investments carry higher risk weights. But while there are takers for unrated instruments, rating helps in investment decision making by capturing the risk and pricing of an instrument. "Some are expecting RBI to clear the air for PTCs which are mostly issued by NBFCs (entities regulated by RBI). If RBI gives a green signal for PTCs, then the issue related to rating of unlisted corporate bonds has to be resolved. Company FDs are a small market," said another official. Earnings from ratings of unlisted papers, said an analyst, is a small slice of CRAs' earnings, but a lack of rating can have some implications for the wholesale debt market. For instance, CRAs' periodic reports on the PTC market are closely tracked by investors. "There are adequate regulations on investments in these unlisted securities but there is not enough regulation about their rating. SEBI understandably wants rating of any instrument to be cleared by some authority. It doesn't want to be blamed for a big loss or default which inevitably raises questions on ratings," said the person. "The market too is evolving. The assets of Alternative investment funds have surged in the last 5 to 6 years and many of these funds put money in unlisted papers," she said. Earlier, CRAs could choose on what it would rate, but those days are long over with the role and rules agencies coming under scrutiny since the IL&FS default in 2018.
