Discuss the guiding code of conduct that shall be followed by Credit Rating Agencies as per SEBI (Credit Rating Agencies) Regulations, 1999.

Code of Conduct to be followed by Credit Rating Agencies as per SEBI (Credit Rating Agencies) Regulations, 1999: Every credit rating agency is required to abide by the following terms of the Code of Conduct as per SEBI Regulations: Integrity, Dignity and Fairness: A credit rating agency in the conduct of its business should observe high standards of integrity, dignity and fairness in all its dealings with its clients. Ethical Obligations: A credit rating agency should fulfil its obligations in an ethical manner. High Standards of Service: A credit rating agency should render at all times high standards of service, exercise due diligence, ensure proper care and exercise independent professional judgement. It shall wherever necessary, disclose to the clients, possible sources of conflict of duties and interests, while providing unbiased services. Avoid Conflict of Interest: The credit rating agency should avoid any conflict of interest of any member of its rating committee participating in the rating analysis. Any potential conflict of interest shall be disclosed to the client. No Unfair Competition: A credit rating agency should not indulge in unfair competition nor they wean away client of any other rating agency on assurance of higher rating. No Exaggerated Statements: A credit rating agency should not make any exaggerated statement, whether oral or written, to the client either about its qualification or its capability to render certain services or its achievements in regard to services rendered to other clients. Prompt and Efficient Dealings: A credit rating agency should always endeavour to ensure that all professional dealings are affected in a prompt and efficient manner. Confidentiality: A credit rating agency should not divulge to other clients, press or any other party any confidential information about its client, which has come to its knowledge, without making disclosure to the concerned person of the rated company/client. No Untrue Statements: A credit rating agency should not make untrue statement or suppress any material fact in any documents, reports, papers or information furnished to SEBI or to public or to stock exchange. Avoid Market Manipulation: A credit rating agency should not generally and particularly in respect of issue of securities rated by it be a party to: creation of false market. passing of price sensitive information to brokers, members of the stock exchanges, other players in the capital market or to any other person or take any other action which is unethical or unfair to the investors. Arm's Length Relationship: A credit rating agency should maintain an arm's length relationship between its credit rating activity and any other activity. A credit rating agency or any of its employees should not render directly or indirectly any investment advice about any security in the publicly accessible media, whether real-time or non-real time, unless a disclosure of his interest including long or short position in the said security has been made, while rendering such advice. In case an employee of the credit rating agency is rendering such advice, he should also disclose the interest of his dependent family members and the employer including their long or short in the said security, while rendering such advice. Compliance with Regulations: A credit rating agency is required to abide by the provisions of the Act, regulations and circulars which may be applicable and relevant to the activities carried on by the credit rating agency.