Securities and Exchange Board of India (Credit Rating Agencies) (Second Amendment) Regulations, 2018

Sep 20, 2018 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI), on September 11, 2018, has published Securities and Exchange Board of India (Credit Rating Agencies) (Second Amendment) Regulations, 2018  to further amend the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.

Vide the Second Amendment Regulations; amendment in Regulation 9 has been made in the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.

In Regulation 9, which gives the conditions to be fulfilled for the grant of certificate of registration for a Credit Rating Agency, the clause (f) shall be substituted with the following, namely:

“(f) a credit rating agency shall not carry out any activity other than the rating of securities offered by way of public or rights issue.

 Nothing contained in these regulations shall preclude a credit rating agency from rating of financial instruments under the respective guidelines of a financial sector regulator or any authority as may be specified by the Board.

Provided that all other activities shall be segregated to a separate entity within a period of two years from the date of notification of Securities and Exchange Board of India (Credit Rating Agencies)(Amendment) Regulations, 2018.”

The Regulations shall come into force on the date of their publication in the Official Gazette.

[No. SEBI/LAD-NRO/GN/2018/33]

URL: http://www.egazette.nic.in/WriteReadData/2018/189777.pdf


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