Arohan Financial Services faced a temporary default rating downgrade due to regulatory norms outlined in the SEBI circular dated November 18, 2024. However, the company was simultaneously upgraded by rating agency ICRA.

The downgrade stemmed from a delay in transferring ₹44,609 in interest payments to six debenture holders. The delay was caused by the absence of correct account details, leading to a hold-up in crediting the amount to the escrow account. Under SEBI’s new regulations, even a one-day delay in repayment—regardless of the amount—qualifies as a default.

The November 18 circular eliminated past leniency for “technical defaults,” reinforcing stricter compliance standards. Despite the temporary rating downgrade, ICRA later upgraded Arohan’s rating after the issue was resolved.