SEBI (Credit Rating Agencies) (Amendment) Regulations, 2010 – Gazette Notification dated March 19, 2010
Summary
This document comprises a SEBI circular and the accompanying Gazette Notification for the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2010. The regulations amend the principal 1999 regulations by inserting new definitions regarding 'change of status or constitution' and 'change in control' for credit rating agencies. Additionally, the amendment mandates that credit rating agencies must obtain prior approval from the Board before continuing to operate after such changes.
Text
These regulations may be called the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2010.
They shall come into force on the date of their publication in the Official Gazette.
'change of status or constitution' in relation to a credit rating agency - (i) means any change in its status or constitution of whatsoever nature; and (ii) without prejudice to generality of sub-clause (i), includes— (A) amalgamation, demerger, consolidation or any other kind of corporate restructuring... (B) change in its managing director or whole-time director; and (C) any change in control over the body corporate;
'change in control', in relation to a credit rating agency being a body corporate, means:— (i) if its shares are listed on any recognised stock exchange, change in control as defined under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997; (ii) in any other case, change in the controlling interest in the body corporate.
For the purpose of sub-clause (ii), the expression “controlling interest” means an interest, whether direct or indirect, to the extent of at least fifty-one per cent of voting rights in the body corporate;
where the credit rating agency proposes to change its status or constitution, it shall obtain prior approval of the Board for continuing to act as such after the change.
Source: SecMarx — SEBI (Credit Rating Agencies) (Amendment) Regulations, 2010 – Gazette Notification dated March 19, 2010. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.