The Securities and Exchange Board of India has notified the SEBI (Credit Rating Agencies) (Amendment) Regulations, 2021 on August 3, 2021. The Amendment makes changes to the SEBI (Credit Rating Agencies) Regulations, 1999.
Key amendments are as follows:
- The Amendment clarifies that the words and expressions used and not defined in these regulations but defined in the Act such as the Securities Contracts (Regulation) Act, 1956, the Companies Act, 2013, or any rules or regulations made thereunder, shall have the same meanings respectively assigned to them in those Acts, rules or regulations made thereunder or any statutory modification or re-enactment thereto, as the case may be. [ 2(2)]
- It states that a credit rating agency shall only rate securities that are listed or proposed to be listed on a stock exchange recognized by the Board. Earlier, the securities offered by way of public or rights issue were recognised to be rated by the credit rating agency. [ 9(f)]
- It provides that the Board shall have the right to investigate into complaints received from investors, clients or any other person on any matter having a bearing on activities of credit rating agency which relate to the rating of securities that are listed or proposed to be listed on a stock exchange recognized by the Board. [ 29]
*Tanvi Singh, Editorial Assistant has reported this brief.
