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[SEBI] Consultation Paper On Review Of The Regulatory Framework For Credit Rating Agencies(CRAs)

Securities Market Updates (Country: India)

Sep 08, 2017: SEBI has issued Consultation Paper on Review of the Regulatory Framework for Credit Rating Agencies (CRAs) inviting Public Comments on it.

Objective: The objective of the consultation paper is to seek comments/ views from the public on the proposals that are expected to improve market efficiency by reducing the information asymmetry in the market and enhancing the governance, accountability and functioning of Credit Rating Agencies (CRAs) for carrying out the rating activities in an efficient and professional manner, thereby, yielding timely and accurate ratings.


Background: SEBI intends to review the regulatory framework for CRAs and put in place provisions pertaining to enhanced disclosures by issuer companies that shall augment the effectiveness of the rating process and outcomes and enable CRAs to be proactive and come out with fair, objective and unbiased ratings, mitigating the issues of conflict of interest. In pursuance of the same, the regulatory framework and practices prevalent in other jurisdictions were also referred. SEBI also held discussions with various market participants/ stakeholders to understand their concerns and suggestions. After taking into account these suggestions and practices abroad, this paper has been prepared where the proposals are listed for public comments, along with detailed rationale for the same.

THE COMPLETE DOCUMENT ON THE CONSULTATION PAPER IS AVAILABLE HERE - LINK


Public Comments:

Public comments are invited on the proposals contained in the Consultation Paper in the following format:

Name of entity/ person/ intermediary/ organization: _______________
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Sr.No. | Pertains to Point No. | Comments/ suggestions|  Rationale
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Comments/ suggestions may be forwarded by email to cra@sebi.gov.in or may be sent by post to the following address latest by September 29, 2017.

Deputy General Manager
Market Intermediaries Regulation and Supervision Department- 4
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C4-A, "G" Block, Bandra Kurla Complex
Bandra (East), Mumbai - 400 051
Ph: 022-26449315

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