The Securities and Exchange Board of India (SEBI) wants credit rating agencies to avoid suspending ratings if a company stops providing adequate information, the regulator told them at a recent meeting. At a meeting on 8 October, the markets regulator asked raters for suggestions on ways to continue evaluating an instrument based on publicly available information and avoid suspending an existing rating, according to two people familiar with the discussions. Both of them declined to be named. “The regulator wanted to know why at all a suspension should happen. The need for the same was explained by the agencies, where during the tenure of a rating, it is possible that the issuer may not share information when not favourable. So the question is, how do you deal with this? At the end, the regulator has asked agencies to articulate and come out with a white paper on a uniform practice that could be adopted,” said one of the people. Rating agencies have been asked to submit this white...