Regulatory Alerts2019-10-17
Added · Updated
Credit Rating Companies Regulations, 2016
The Securities and Exchange Commission of Pakistan establishes licensing requirements for credit rating companies, mandating that entities obtain a license to operate and prohibiting unlicensed activities. The regulations impose specific eligibility criteria, including a requirement for joint ventures with internationally recognized institutions and strict fit and proper tests for promoters, directors, and senior management. Shareholding limits are set at thirty-three percent for single shareholders and forty percent for individuals collectively, while foreign agencies may hold up to one hundred percent. The document further outlines obligations regarding conflict of interest, rating methodologies, and disciplinary procedures for license suspension or cancellation.