Credit Rating Companies Regulation, 2016

# GOVERNMENT OF PAKISTAN
## SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

**Islamabad, the 5th August, 2016.**

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## NOTIFICATION

S. R. O. **729** (I)/2016. - In exercise of powers conferred by sub-section (4) of section 169 read with sections 68, 69, 75, 79, 80, 84 and 151 of the Securities Act, 2015, (Act No III of 2015), the Securities and Exchange Commission of Pakistan is pleased to make the following credit rating companies regulations, 2016, the same having been previously published vide Notification No. 1145(I)(2015), dated the November 17, 2015, and placed on the website of the Commission as required by sub-section (4) of the said section namely:—

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## CHAPTER I

### Preliminary

**1. Short title and commencement**- (1) These Regulations shall be called the Credit Rating Companies Regulations, 2016.

(2) They shall come into force with immediate effect.

**2. Definitions**.- (1) In these regulations, unless there is anything repugnant in the subject or context, —

(a) “Act” means the Securities Act, 2015 (Act No. III of 2015);

(b) “credit rating” means a process of evaluating credit worthiness of a person which expresses its ability or willingness to meet financial obligations in full and on time;

(c) “credit rating company” means a public company licensed as a credit rating company by the Commission under section 69 of the Act;

(d) “external member” means any person who has been appointed by credit rating company as member of its rating committee and has no direct or indirect association with the credit rating company or any of its directors and sponsors;

(e) “equity” means total assets minus total liabilities excluding surplus on revaluation of fixed assets;

(g) “substantial shareholder” in relation to a credit rating company, means a

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