Regulatory Alerts2026-02-10
Obligations on CRAs while undertaking rating of financial instruments falling under the purview of any other Financial Sector Regulator
The Securities and Exchange Board of India (SEBI) mandates that Credit Rating Agencies (CRAs) comply with specific operational and disclosure requirements when rating financial instruments regulated by other financial sector regulators. These obligations include maintaining separate email IDs and website sections for grievances, ensuring net worth stipulations are additive, and clearly disclosing the unavailability of SEBI investor protection mechanisms in all rating reports and client agreements. Implementation is staggered, with provisions regarding grievance handling and client intimation taking effect after twelve months, while all other requirements become operative sixty days from the circular's issuance.
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