Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

S.O. 547(E) · 1999-07-07 · Securities and Exchange Board of India

Summary

Part 1 contains the Preliminary chapter of the SEBI (Credit Rating Agencies) Regulations, 1999 notified as S.O. 547(E) on 7 July 1999 under section 30 read with section 11 of the SEBI Act, 1992. It provides the short title and commencement on publication in the Official Gazette and sets out definitions in regulation 2(1) for terms including Act, associate, Board, body corporate, certificate, change in control, client, company, credit rating agency, economic offence, fraud, group companies, issuer, net-worth, rating and securities. Regulation 2(2) provides that words not defined in these regulations but defined in the SEBI Act, Securities Contracts (Regulation) Act, 1956, Companies Act, 2013 or rules/regulations thereunder shall have the same meanings as in those enactments. This part comprises Chapter II on registration of credit rating agencies covering regulations 3 to 7. It prescribes the application procedure for a certificate of registration, promoter categories under regulation 4, and detailed eligibility conditions under regulation 5 including net worth of rupees twenty five crore and fit and proper criteria. It also sets out the Board's powers to reject incomplete applicati

Text

These regulations may be called the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.

They shall come into force on the date of their publication in the Official Gazette.

"Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992);

"associate", in relation to a credit rating agency, includes a person– (i) who, directly or indirectly, by himself, or in combination with relatives, owns or controls shares carrying not less than ten percent of the voting rights of the credit rating agency, or (ii) in respect of whom the credit rating agency, directly or indirectly, by itself, or in combination with other persons, owns or controls shares carrying not less than ten percent of the voting rights, or (iii) majority of the directors of which, own or control shares carrying not less than ten percent of the voting rights of the credit rating agency, or (iv) whose director, officer or employee is also a director, officer or employee of the credit rating agency;

"Board" means the Board as defined in clause (a) of sub-section (1) of section 2 of the Act;

"body corporate" means a body corporate as defined in clause (11) of section 2 of the Companies Act, 2013 (18 of 2013);

"certificate" means a certificate of registration granted by the Board under these regulations;

"Change in control" in case of a body corporate – (A) if its shares are listed on any recognised stock exchange, shall be construed with reference to the definition of control in terms of regulations framed under clause (h) of sub-section (2) of section 11 of the Act; (B) if its shares are not listed on any recognised stock exchange, shall be construed with reference to the definition of control as provided in sub-section (27) of Section 2 of the Companies Act, 2013 (18 of 2013);

"client" means any person whose securities are rated by a credit rating agency;

"company" means a company incorporated under the Companies Act, 2013 (18 of 2013);

"credit rating agency" means a body corporate which is engaged in, or proposes to be engaged in, the business of rating of securities that are listed or proposed to be listed on a stock exchange recognized by the Board;

"economic offence" means an offence to which the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), is applicable for the time being;

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Source: SecMarx — Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.