SEBI tweaks guidelines on withdrawal of rating by CRAs

Circular no. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2023/19, dated: 03-02-2023

SEBI has amended the operational circular for ‘Credit Rating Agencies’ (CRAs). As per the amended norms, in case of withdrawal of credit rating by CRAs, there is no need to assign a rating and to make a press release where there are no outstanding obligations under the security rated by the CRA or the company whose security rated is wound up or merged or amalgamated with another company. Earlier, the rating/press release for withdrawal of credit ratings by CRAs was required in each case.

With regard to guidelines on the listed securities or instruments falling under the purview of other financial sector regulators, issuers of such instruments and any person connected therewith (such as CRAs) should also abide by the rules as prescribed by such financial sector regulators.

Further, if such instruments are listed on a recognised stock exchange, the rules/regulations/directions/guidelines specified by the Board from time to time would continue to be applicable.

Also, the MD/CEO of a CRA and any person within the CRA who has business responsibility shall not be a member of rating committees of the CRA.

Click Here To Read The Full Circular