List out the name of some Indian and international credit rating agencies. Describe the main features of the SEBI Regulations relating to credit rating agencies in India.
CS Professional · Capital Commodity and Money Market · PYQS · December 2015
List out the name of some Indian and international credit rating agencies. Describe the main features of the SEBI Regulations relating to credit rating agencies in India.
Answer & Explanation:
Indian credit rating agencies Credit Analysis & Research Ltd (CARE) Credit rating Information services of India Ltd. (CRISIL) Investment Information and Credit Rating Agency (ICRA) India Ratings and Research Pvt. Ltd. Brickwork Ratings India Pvt. Ltd. SME Rating Agency of India Limited (SMERA) Infomerics Valuation and Rating Pvt. Ltd. International Credit rating agencies Moody's Investors Service Standard & Poor's (S&P) Shanghai Credit Information Services Co., Ltd. Main features of SEBI (Credit Rating Agencies) Regulations, 1996 Every credit rating agency is required to obtain a certificate of registration from SEBI and the period of validity of such certificate of registration is three years. A Credit Rating Agency (CRA) cannot rate securities issued by any borrower, subsidiary, an associate promoter of CRA, if there are common Chairman, Directors and Employees between the CRA or its rating committee and these entities. Every credit rating agency shall abide by the Code of Conduct contained in the Third Schedule of these regulations. Every credit rating agency is required to enter into a written agreement with each client whose securities it proposes to rate. Credit rating agency should make public the definitions of the concerned rating, along with the symbol and state that the ratings do not constitute recommendations to buy, hold or sell any securities. 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 comply with such guidelines, directives, circulars and instructions as may be issued by SEBI from time to time, on the subject of credit rating. 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 SEBI or the Central Government. Every credit rating agency shall keep and maintain, for a minimum period of five years, the books of accounts, records and documents prescribed by SEBI in this regard. Every credit rating agency shall treat, as confidential, information supplied to it by the client and no credit rating agency shall disclose the same to any other person, except where such disclosure is required or permitted by under or any law for the time being in force.
Topics: Capital Market
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