SEBI, vide its operational circular dated January 6, 2023 came out with Operational Circular for Credit Rating Agencies (CRAs). SEBI further added that Operational Circular has been prepared in order to enable the industry and other users to access to all the applicable circulars/directions at one place.
It is to be noted that Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 prescribes guidelines for registration of Credit Rating Agencies (CRAs), general obligations of CRAs, manner of inspection and investigation and code of conduct applicable on CRAs. Multiple circulars have been issued, over the years, covering the operational and procedural aspects thereof.
Further, this Operational Circular is a compilation of the existing circulars as on December 31, 2022, with consequent changes. The stipulations contained in these circulars have been detailed chapter-wise in this operational circular. Accordingly, the list of existing circulars for CRAs which have been superseded by Operational Circular is placed at Annexure A
The provisions of this operational circular shall come into effect from February 1, 2023 and is applicable to all Registered Credit Rating Agencies, All Registered Debenture Trustees, Issuers who have listed and/or propose to list Non-Convertible Securities, Securitized Debt Instruments, Security Receipts, Municipal Debt Securities or Commercial Paper Recognized Stock Exchanges and all Depositories registered with SEBI.
| Link to the Operational Circular: |
| https://www.sebi.gov.in/legal/circulars/jan-2023/operational-circular-for-credit-rating-agencies_67080.html |
About the Author
