The government has asked all financial regulators to relax investment norms for companies, enabling them to put money into large infrastructure (infra) projects rated ‘expected loss’ (EL). At present, regulators allow investments only in high-rated infra projects.
EL is a new rating scale which will factor in the probability of default and recovery prospects. It helps investors make a distinction between entities with strong fundamentals and recovery prospects and those without. Earlier this week, the finance ministry’s Department of Economic Affairs met all …
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First Published: Thu, February 25 2021. 06:10 IST
