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Date: 2022-01-24 Category: Extra Ordinary State: Union Government Country: India

The In exercise of the powers conferred by section 30 read with section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

## Policy Analysis Report: Securities and Exchange Board of India Credit Rating Agencies Amendment Regulations, 2022 **1. Executive Summary:** This report analyzes the Securities and Exchange Board of India (SEBI) Credit Rating Agencies Amendment Regulations, 2022, as published in the Gazette of India on January 24, 2022. This amendment modifies the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999. The key change introduced by this amendment empowers SEBI to specify additional activities that credit rating agencies must undertake. This report details the amendment's provisions, target audience, inferred implementation aspects, and potential impact. The core purpose of the amendment appears to be granting SEBI greater oversight and authority in directing the operational scope of credit rating agencies. **2. Introduction:** This report aims to provide an informative overview of the Securities and Exchange Board of India Credit Rating Agencies Amendment Regulations, 2022 (hereafter referred to as "the Amendment"). This analysis is based solely on the provided policy text. **3. Policy Overview:** * The Amendment modifies the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999. * **Core Objective(s):** Based on the provided text, the core objective of the Amendment appears to be to grant SEBI the authority to specify additional activities that Credit Rating Agencies (CRAs) must perform, going beyond just rating financial instruments. **4. Background and Rationale:** The Amendment likely aims to provide SEBI with greater flexibility in regulating CRAs and ensuring they operate in a manner consistent with broader regulatory objectives. The Amendment suggests a need to expand the scope of CRAs' responsibilities or activities beyond their traditional role of rating financial instruments. This could be in response to evolving market conditions, perceived gaps in existing regulations, or a desire to enhance the overall effectiveness of CRAs in the financial system. **5. Key Provisions / Changes:** This section focuses specifically on the changes introduced by the 2022 Amendment: * **Specific Part of Original Policy Changed:** Regulation 9, clause f, of the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999. * **New Rule/Provision:** The amendment inserts the phrase "carrying out any activity as may be specified by the Board or" after the words "credit rating agency from and before the words rating of financial instruments". Therefore, the amended section will state that clause (f) applies to credit rating agencies carrying out activities as specified by the board from rating financial instruments. * **Difference/Effect of Change:** Previously, Regulation 9, clause f, likely focused solely on the CRA's role in "rating of financial instruments." The amendment now expands this by allowing SEBI to mandate other activities. This effectively widens the CRA's potential responsibilities and increases SEBI's control over their operations. **6. Target Audience and Stakeholders:** Based on the provided text, the primary target audience and stakeholders are: * Credit Rating Agencies (CRAs) operating in India. * The Securities and Exchange Board of India (SEBI). * Entities that utilize the services of CRAs, such as issuers of securities and investors, who are indirectly affected. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Securities and Exchange Board of India (SEBI) is the responsible body for implementing and enforcing this amendment. * **Timelines/Procedures:** The Amendment comes into force on the date of its publication in the Official Gazette, which is January 24, 2022. No other specific timelines or procedures are detailed in the provided text. Further details on the additional activities to be carried out by the CRAs are likely to be specified by SEBI separately. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to provide SEBI with greater regulatory control over Credit Rating Agencies. This change enables SEBI to: * Influence the operational scope of CRAs beyond their traditional rating activities. * Potentially address emerging risks or issues in the financial markets by assigning new responsibilities to CRAs. * Enhance the overall effectiveness and reliability of credit ratings and related services. The potential impact of the amendment includes: * CRAs may need to adapt their operations to comply with new directives from SEBI. * Increased compliance costs for CRAs. * Greater scrutiny of CRAs' activities by SEBI. * Potentially enhanced investor confidence due to increased regulatory oversight. **9. Conclusion:** The Securities and Exchange Board of India Credit Rating Agencies Amendment Regulations, 2022, represents a significant regulatory development, empowering SEBI to mandate additional activities for Credit Rating Agencies. This amendment is likely intended to provide SEBI with greater flexibility in regulating CRAs and enhancing the stability and integrity of the financial markets. The amendment expands the responsibilities of CRAs and increases the regulatory oversight of SEBI.

Key Entities Referenced

Securities and Exchange Board of India: Regulatory body in India for securities and commodity market. Securities and Exchange Board of India Act, 1992: Act of Parliament of India to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market. Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999: Regulations pertaining to credit rating agencies as issued by the Securities and Exchange Board of India. Securities and Exchange Board of India Credit Rating Agencies Amendment Regulations, 2022: Amendment regulations pertaining to credit rating agencies as issued by the Securities and Exchange Board of India in 2022. Mumbai: City in Maharashtra, location of the notification. Ajay Tyagi: Chairman of Securities and Exchange Board of India. Securities Appellate Tribunal: A statutory body to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India New Delhi: Location of the Government of India Press.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-24012022-232846 xxxGIDHxxx CG-MH-E-24012022-232846 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 46] िई ददल्ली, सोमिार, िििरी 24, 2022/माध 4, 1943 No. 46] NEW DELHI, MONDAY, JANUARY 24, 2022/MAGHA 4, 1943 भारतीय प्रजतभजू त और जिजिमय बोडड अजधसचू िा म ंबई, 24 िििरी, 2022 भारतीय प्रजतभजू त और जिजिमय बोडड (साख जिधारड ण एिजें सया)ाँ (सिं ोधि) जिजियम, 2022 स.ं सबे ी/एल.ए.डी.-एि.आर.ओ/िी.एि./2022/69.—बोडड, भारतीय प्रजतभूजत और जिजिमय बोड ड अजधजियम, 1992 (1992 का 15) की धारा 11 के साथ पठित धारा 30 द्वारा प्रदाि की गई िजियों का प्रयोग करत े हुए एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 का और संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथातड :् — 1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2022 कहा िा सकेगा । 2. य े जिजियम रािपत्र म ेंइिके प्रकािि की तारीख को लाग ू होंग े । 3. भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 में,— 452 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] I. जिजियम 9 म,ें खंड (च) म,ें िब्दों “कोई भी बात दकसी साख जिधाडरण एिेंसी को” के बाद और िब्दों “दकसी जित्तीय क्षेत्र के जिजियामक” से पहल,े िब्द “बोडड द्वारा यथा जिधाडठरत कोई दियाकलाप करि े अथिा” आ िाएंग े । अिय त्यागी, अध्यक्ष [जिज्ञापि-III/4/असा./602/2021-22] पाद ठिप्पण : 1. भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 भारत के रािपत्र म ें प्रकाजित तारीख 7 ि लाई 1999 की का.आ. सं. 547(अ) के अधीि िारी हुए थ े। 2. भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 तत्पश्चात् - क. 28 माचड 2000 को का.आ. स.ं 278(अ) द्वारा रािपत्र म ेंप्रकाजित भारतीय प्रजतभूजत और जिजिमय बोडड (प्रजतभूजत अपीलीय न्यायाजधकरण को अपील) (संिोधि) जिजियम, 2000 द्वारा ख. 29 मई 2001 को, भारतीय प्रजतभूजत और जिजिमय बोड ड (मध्यिर्तडयों द्वारा जिजिधाि सलाह) (संिोधि) जिजियम, 2001, का.आ. स.ं 476(अ), द्वारा ग. 27 जसतम्बर 2002 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िांच अजधकारी द्वारा िांच करि े और िाजस्ट्त अजधरोजपत करि ेके जलए प्रदिया) जिजियम, 2002, का.आ. स.ं 1045(अ), द्वारा घ. 19 फरिरी 2003 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2003, का.आ. स.ं 203(अ), द्वारा ङ. 1 अिूबर 2003 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि) जिजियम, 2003, का.आ. स.ं 1160(अ), द्वारा च. 10 माच ड 2004 को भारतीय प्रजतभूजत और जिजिमय बोडड (उपय ि तथा उजचत व्यजि के जलए मािदंड) जिजियम, 2004, का.आ. स.ं 398(अ), द्वारा छ. 7 जसतम्बर 2006 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2006, का.आ. स.ं 1454(अ), द्वारा ि. 26 मई 2008 को भारतीय प्रजतभूजत और जिजिमय बोडड (मध्यिती) जिजियम, 2008, सं. एलएडी/एिआरओ/िीएि/2008/11/126538, द्वारा झ. 19 माचड 2010 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2010, अजधसूचिा स.ं एलएडी/एिआरओ/िीएि/2009-2010/30/199044, द्वारा[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 ञ. 13 अप्रैल 2011 को भारतीय प्रजतभूजत और जिजिमय बोड ड [क छ मध्यिर्तडयों (इंिरमीजडयरीज़) के रजिस्ट्रीकरण की ितों म ें पठरितडि] (संिोधि) जिजियम, 2011, अजधसूचिा सं. एलएडी/एिआरओ/िीएि/2011-12/03/12650, द्वारा ि. 5 ि लाई 2011 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2011, अजधसूचिा स.ं एलएडी/एिआरओ/िीएि/2011-12/10/21232, द्वारा ि. 27 ददसम्बर 2011 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि) जिजियम, 2011, अजधसूचिा सं. एलएडी-एिआरओ/िीएि/2011-12/31/39022, द्वारा ड. 23 मई 2014 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का संदाय) (संिोधि) जिजियम, 2014, अजधसूचिा सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2014-15/03/1089, द्वारा ढ. 8 ददसम्बर 2016 को भारतीय प्रजतभूजत और जिजिमय बोड ड [क छ मध्यिर्तडयों (इंिरमीजडयरीज़) के रजिस्ट्रीकरण की ितों म ें पठरितडि] (संिोधि) जिजियम 2016, अजधसूचिा स.ं सेबी/एल.ए.डी.- एि.आर.ओ./िी.एि./2016-17/023, द्वारा ण. 6 माच,ड 2017 को भारतीय प्रजतभूजत और जिजिमय बोड ड (फीस का भ गताि और भ गताि का माध्यम) (संिोधि) जिजियम, 2017, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/037 (तारीख 29 माच,ड 2017 की अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/038 के साथ पठित), द्वारा त. 30 मई 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2018, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2018-15, द्वारा थ. 11 जसतम्बर 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि) जिजियम, 2018, अजधसूचिा सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2018/36, द्वारा द. 23 जसतम्बर, 2019 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2019, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/34, द्वारा ध. 17 अप्रलै , 2020 को भारतीय प्रजतभूजत और जिजिमय बोड ड (रेग्यूलेिरी सैंडबॉक्स) (संिोधि) जिजियम, 2020, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2020/10, द्वारा ि. 5 मई, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का भ गताि और भ गताि का माध्यम) (संिोधि) जिजियम, 2021, अजधसूचिा स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/23, द्वारा प. 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम, 2021, अजधसूचिा स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/29, द्वारा फ. 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेिरी सैंडबॉक्स) (संिोधि) जिजियम, 2021, स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/30, द्वारा संिोजधत हुए थ े।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 24th January, 2022 SECURITIES AND EXCHANGE BOARD OF INDIA (CREDIT RATING AGENCIES) (AMENDMENT) REGULATIONS, 2022 No. SEBI/LAD-NRO/GN/2022/69.—The In exercise of the powers conferred by section 30 read with section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, namely:— 1. These Regulations may be called the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2022. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999— I. in regulation 9, in clause (f), after the words “credit rating agency from” and before the words “rating of financial instruments”, the words “carrying out any activity as may be specified by the Board or” shall be inserted. AJAY TYAGI, CHAIRMAN [ADVT.-III/4/Exty./602/2021-22] Footnote: 1. The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 were issued under S.O. No. 547 (E) dated July 7, 1999 published in the Gazette of India. 2. The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 were subsequently amended on— a. March 28, 2000 by the Securities and Exchange Board of India (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 published in Official Gazette vide S.O. No. 278(E). b. May 29, 2001, by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) (Regulations), 2001 vide S.O. No. 476 (E). c. September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide No. S.O. No.1045 (E). d. February 19, 2003 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2003 vide S.O. No. 203 (E). e. October 1, 2003 by the Securities and Exchange Board of India (Credit Rating Agencies) (Second Amendment) Regulations, 2003 vide S.O. No. 1160 (E). f. March 10, 2004 by Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S. O. No. 398 (E). g. September 7, 2006 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2006 vide S. O. No. 1454(E). h. May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide no. LAD/ NRO/GN/2008/11/126538. i. March 19, 2010 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2010 vide Notification No. LAD-NRO/GN/2009- 2010/30/199044. j. April 13, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No. LAD/ NRO/ GN/ 2011-12/03/12650. k. July 5, 2011 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2011 vide Notification No. LAD/NRO/GN/2011- 12/10/21232.[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 5 l. December 27, 2011 by the Securities and Exchange Board of India (Credit Rating Agencies) (Second Amendment) Regulations, 2011 vide Notification No. LAD/NRO/GN/2011-12/31/39022. m. May 23, 2014 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2014 vide notification no. LAD- NRO/GN/2014-15/03/1089. n. December 8, 2016 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide Notification No. SEBI/LAD/NRO/GN/2016-17/023. o. March 6, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 vide notification no. SEBI/LAD/NRO/GN/2016-17/037 read with notification no. SEBI/LAD/NRO/GN/2016-17/38 dated March 29, 2017. p. May 30, 2018 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2018 vide Notification No. SEBI/LAD-NRO/GN/2018-15. q. September 11, 2018 by the Securities and Exchange Board of India (Credit Rating Agencies) (Second Amendment) Regulations, 2018 vide Notification No. SEBI/LAD- NRO/GN/2018/36. r. September 23, 2019 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2019 vide Notification No. SEBI/LAD- NRO/GN/2019/34. s. April 17, 2020 by the by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide Notification No. SEBI/LAD- NRO/GN/2020/10. t. May 5, 2021 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2021 vide Notification No. SEBI/LAD-NRO/GN/2021/23. u. August 3, 2021 by the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2021 vide Notification No. SEBI/LAD- NRO/GN/2021/29. v. August 3, 2021, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/30. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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