The Market Regulator, Securities, and Exchange Board of India (SEBI) recognized the investigation into complaints received from investors, clients in respect of the rating of securities.
The SEBI notified the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2021 seeks to amend the SEBI (Credit Rating Agencies) Regulations, 1999.
In regulation 2, in sub-regulation (1), in clause (d), the words and symbols ―clause (7) of section 2 of the Companies Act, 1956 (1 of 1956)” shall be replaced with the words and symbols ―clause (11) of section 2 of the Companies Act, 2013 (18 of 2013)”
In regulation 2, in clause (eii), in sub-clause (i), the words and symbols ―Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997″ shall be replaced with the words and symbols ―regulations framed under clause (h) of sub-section (2) of section 11 of the Act”.
In regulation 9, in clause (f), the words “offered by way of public or rights issue” shall be replaced with the words “that are listed or proposed to be listed on a stock exchange recognized by the Board” before the proviso to clause (f), the “Explanation: For the purposes of this clause, the ratings undertaken by a credit rating agency under the respective guidelines of a financial sector regulator or authority shall be under the purview of the respective financial sector regulator or authority,” shall be inserted.
In regulation 29, in sub-regulation (2), clause (c) shall be substituted with “to investigate into complaints received from investors, clients or any other person on any matter having a bearing on activities of credit rating agency in so far as the complaints relate to the rating of securities that are listed or proposed to be listed on a stock exchange recognized by the Board”.
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