Regulatory Alerts2022-09-23
Added · Updated
Amendments to the Credit Rating Companies Regulation, 2016
The Securities and Exchange Commission of Pakistan amends the Credit Rating Companies Regulation, 2016, to impose shareholding requirements on credit rating companies, including a three-year blocked share period for promoters and directors and a mandatory 25% holding by specified institutional investors for three years. The amendments introduce a prior written approval requirement for any shareholding change exceeding ten percent and establish a one-year transition period with six months of simultaneous ratings when terminating a contract with an existing credit rating agency. Additionally, the rules modify rating review frequencies to an annual basis and require credit rating companies to explain any rating changes of more than two notches within a six-month period.