CRA Regulations Amended To Expand Permitted Activities

Notification No. SEBI/LAD-NRO/GN/2026/293, Dated: 13.01.2026

1. Introduction

Securities and Exchange Board of India (SEBI) has notified an amendment to Regulation 9(f) of the SEBI (Credit Rating Agencies) Regulations, 1999, modifying the scope of activities that credit rating agencies (CRAs) are permitted to undertake.

2. Background Of Regulation 9(f)

Regulation 9(f) governs the ability of CRAs to engage in activities beyond credit rating. Earlier, the provision allowed additional activities subject to conditions, including a proviso mandating segregation of such activities to avoid conflicts of interest.

3. Revised Scope Of Permitted Activities

Under the amended regulation, CRAs are permitted to carry out any other activity as may be specified by SEBI. Further, CRAs may undertake rating of financial instruments that fall under the regulatory domain of other financial sector regulators or authorities.

4. Omission Of Segregation Proviso

A key change introduced by the amendment is the omission of the proviso relating to segregation of other activities. This signals a shift towards a more flexible regulatory approach, relying on SEBI’s oversight rather than mandatory structural separation.

5. Conclusion

The amendment to Regulation 9(f) reflects SEBI’s intent to modernise the regulatory framework for credit rating agencies. By expanding permissible activities and removing rigid segregation requirements, the revised framework aims to enhance operational flexibility while maintaining regulatory control.

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