IND SEBI Issued Master Circular re CRAs

On Jul. 3, IND SEBI issued master circular for credit rating agencies.

  • IND SEBI issued master circular for credit rating agencies (CRAs) to enable industry and other users to have access to all the applicable circulars/directions in one place.
  • Overview of Master Circular
  • Master circular is a compilation of existing circulars as at Jul. 3, 2023, with modifications; stipulations in existing circulars have been detailed chapter-wise.
  • Annexure A contains a list of previous circulars for CRAs that have been superseded.
  • Contents include registration requirements, rating operations, reporting and disclosure.
  • May 2024 Master Circular Reissued
  • On May 16, 2024, IND SEBI prepared a master circular for credit rating agencies, compiling all existing circulars as on May 16, 2024, with consequent changes.
  • Stipulations in existing circulars have been detailed chapter-wise in master circular.
  • Annexed a list of previous circulars for CRAs that have been superseded, i.e. #184020.
  • Jul. 2024 Modification to Master Circular
  • On Jul. 4, 2024, IND SEBI issued circular to modify ch III of master circular above, in order to promote ease of doing business and bring uniformity in dealing with appeals.
  • IND SEBI explained that based on consultation with stakeholders including CRAs, it has been decided to provide specific timelines for dealing with appeals made by the issuer.
  • Namely, in respect of rating actions carried out under periodic surveillance of ratings.
  • Communication of rating to the issuer is required immediately but not over 1 working day of rating committee meeting; request for review/appeal of rating by issuer must be immediately but not later than 3 working days of rating committee meeting (RCM).
  • Dissemination of press release on CRA’s website and intimation of the same to stock exchange / debenture trustee - immediately but not later than 7 working days of RCM.
  • The circular includes particulars re disclosures that should be maintained by CRAs on their website, for at least 10 years; this also includes ratings press releases by CRAs.
  • Circular shall be applicable with effect from Aug. 1, 2024; prescribes a duty to monitor.

Regulators IND SEBI
Entity Types CRA; Exch; Fiduciary
Reference Cir SEBI/HO/DDHS/DDHS-PoD-3/P/CIR/2024/97, 7/4/2024; Cir SEBI/HO/DDHS/DDHS-POD3/P/CIR/2024/47, 5/16/2024; Cir SEBI/HO/DDHS/DDHS-POD2/P/CIR/2023/111, 7/3/2023
Functions Complaints; Compliance; Financial; Operations; Record Retention; Registration/Licensing; Reporting
Countries India
Products CRA; Fixed Income; Issuance/IPO
Regions AP
Rule Type Final
Rule Date 7/3/2023
Effective Date 8/1/2024
Rule Id 178323
Linked to N/A
Reg. Last Update 7/4/2024
Report Section International

Last substantive update on 07/09/2024