SEBI modifies Guidelines in respect of Process for Review of Rating Credit Rating Agency

Sep 21, 2018 | by Avantis RegTech Legal Research Team

The Securities and Exchange Board of India (SEBI), vide Circular No. SEBI/HO/MIRSD/DOP2/CIR/P/2018/86 dated May 30, 2018, had issued the guidelines in respect of the process for review of rating.

Subsequently, the SEBI had received representations from market participants. The concerns of the market participants were discussed with Credit Rating Agencies (CRAs) and SEBI has decided to modify the Circular No. SEBI/HO/MIRSD/DOP2/CIR/P/2018/86 dated May 30, 2018.

In modification to Para 1 of the Circular, which gave guidelines for CRA when they receive request by Issuers for review of ratings provided by them,cases of requests by an issuer for review of the rating(s) provided to its instrument(s) shall be reviewed by a rating committee of the CRA that shall consist of majority of members that are different from those in the Rating Committee of the CRA that assigned the earlier rating, and at least one-third of members are independent.

[Circular SEBI/HO/MIRSD/DOS3/CIR/P/2018/130]



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