Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2019

Sep 26, 2019 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on September 23, 2019, has published the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2019 to further amend the SEBI (Credit Rating Agencies) Regulations, 1999. These Regulations shall come into force on the date of their publication in the Official Gazette that is September 23, 2019.

The amendments made in the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2019 are as follows:

Ø  Regulation 14(c) related to “Agreement with the client” has been substituted, stating that the client shall co-operate with the credit rating agency in order to enable the latter to carry out periodic review of the rating during the tenure of the rated instrument.

Ø  Regulation 14(h) has been newly inserted after clause (g), namely:-

“The client shall provide explicit consent to the credit rating agency to obtain the details related to their existing and/or future borrowing of any nature, its repayment and delay or default, if any, of any nature, in servicing of the borrowing, either from the lender or any other statutory/non-statutory organization maintaining any such information to enable the credit rating agency to have timely information on the same and to consider the impact of such information on the rating assigned by the credit rating agency.”

[Notification No. SEBI/LAD-NRO/GN/2019/34]


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