Enabling Credit Rating Agencies (CRAs) to undertake rating activities under IFSCA
Summary
SEBI amends the Master Circular for Credit Rating Agencies to include IFSCA as a recognized financial sector regulator. This allows SEBI-registered CRAs to undertake rating activities in the International Financial Services Centre under IFSCA guidelines. Regulatory oversight, including enforcement and complaint handling for these specific activities, is assigned exclusively to IFSCA.
Text
International Financial Services Centres Authority (IFSCA) is hereby added to the list of financial sector regulators/ authorities as specified in Annexure 19 of the aforesaid Master circular.
The ratings undertaken by a CRA under the guidelines of IFSCA shall be under the purview of IFSCA.
Any issue arising from the activities of such SEBI registered CRAs in the IFSC shall be dealt with by IFSCA under the powers exercisable under Section 12 and 13 of IFSCA Act and regulations and subsidiary instructions made thereunder.
IFSCA shall be responsible for dealing with complaints, enforcement actions and furnishing information to third parties, including statutory or judicial bodies, in respect to the services provided by the CRAs in the IFSC.
The circular shall be applicable with immediate effect.
This circular is issued with the approval of competent authority, in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 20 of CRA Regulations to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.
Source: SecMarx — Enabling Credit Rating Agencies (CRAs) to undertake rating activities under IFSCA. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.