What are Credit Rating Agencies? What is the minimum net worth requirement for Credit Rating Agencies? Explain in brief the general obligations of Credit Rating Agencies.

In terms of the SEBI (Credit Rating Agencies) Regulations, 1999, a Credit Rating Agency means a body corporate which is engaged in, or proposes to be engaged in, the business of rating of securities that are listed or proposed to be listed on a stock exchange recognized by the SEBI. The minimum net worth requirement for a Credit Rating Agency is ₹25 crores. General Obligations of Credit Rating Agency are as under: Every credit rating agency shall abide by the Code of Conduct. Every credit rating agency shall enter into a written agreement with each client whose securities it proposes to rate. Every credit rating agency shall, during the lifetime of securities rated by it, continuously monitor the rating of such securities. Every credit rating agency shall disseminate information regarding newly assigned ratings, and changes in earlier rating promptly through press releases and websites, and, in the case of securities issued by listed companies, such information shall also be provided simultaneously to the concerned regional stock exchange and to all the stock exchanges where the said securities are listed. Every credit rating agency shall disclose Rating Definitions and Rationale. Where any information is called for by the SEBI from a credit rating agency for the purposes of the SEBI (Credit Rating Agencies) Regulations, 1999, including any report relating to its activities, the credit rating agency shall furnish such information to the SEBI. Every credit rating agency shall comply with such guidelines, directives, circulars and instructions as may be issued by the SEBI from time to time. Every credit rating agency shall appoint a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions etc. issued by the SEBI or the Central Government. Every credit rating agency shall keep and maintain books of accounts, records and documents for a minimum period of five years. All claims, differences or disputes between a credit rating agency and its client arising out of or in relation to the activities of the credit rating agency in the securities market shall be submitted to a dispute resolution mechanism that includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by SEBI.