Master Circular for Credit Rating Agencies
Summary
This section establishes the mandatory online registration mechanism via the SEBI Intermediary Portal for Credit Rating Agencies. It mandates digital payment modes for fees and penalties while requiring specific transaction details for accounting purposes. Furthermore, it outlines the procedural requirements for obtaining prior approval for changes in control and the conditions for voluntarily surrendering a certificate of registration. This section mandates the standardization of rating symbols and definitions for various debt and structured finance instruments to ensure investor understanding and integrity. It requires Credit Rating Agencies (CRAs) to use specific standardized symbols from Annexures 1-6, including prefixes for CRAs and special indicators for structured products. The text defines detailed rating categories ranging from highest safety (AAA) to default (D) for long-term and short-term instruments. This section defines rating symbols and modifiers for long-term and short-term debt mutual fund schemes. It mandates that Credit Rating Agencies maintain an Operations Manual covering specific operational guidelines, criteria, and policies. Additionally, it provides an ann
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SEBI has operationalized SEBI Intermediary Portal (https://siportal.sebi.gov.in) for the intermediaries, inter alia for CRAs, to submit all the registration applications online.
SEBI has notified the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 on March 06, 2017 to enable digital mode of payment (RTGS/NEFT/IMPS etc.) of fees/penalties/remittance/other payments etc.
All registered CRAs are required to obtain prior approval of SEBI in case of change in control.
If a CRA wishes to surrender the registration voluntarily, it shall transfer, wherever relevant, it’s existing business/ client accounts to another SEBI registered intermediary, before they make request to SEBI for accepting the surrender of the certificate of registration.
The symbols and definitions as given in Annexures 1-6 shall be used for the ratings/ reviews by the CRAs.
The rating symbols shall clearly indicate that the ratings are for structured finance products.
The CRA shall include all the assumptions/ covenants made while carrying out the review of such products in the Press Release.
For structured products/ market linked debentures, the credit rating shall bear a prefix ‘PP-MLD’ denoting Principal Protected Market Linked Debentures, followed by the standardized rating symbols...
Rating symbols should have CRA’s first name as prefix. Categories range from AAA (highest degree of safety) to D (in default). Modifiers + or - can be used for AA to C.
Rating symbols should have CRA’s first name as prefix. Categories range from A1 (very strong degree of safety) to D (in default). Modifier + can be used for A1 to A4.
Rating symbols should have CRA’s first name as prefix. Categories range from AAA (SO) to D (SO). Modifiers + or - can be used for AA(SO) to C(SO).
Rating symbols should have CRA’s first name as prefix. Categories range from A1 (SO) to D (SO). Modifier + can be used for A1(SO) to A4(SO).
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Source: SecMarx — Master Circular for Credit Rating Agencies. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.