Securities And Exchange Board Of India - Subsection
Section 9(2) in Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
(2)[ ***] [Omitted by Notification No. F.No LAD-NRO/GN/2011-12/10/21232. dated 5.7.2011 (w.e.f. 7.7.1999).](c)[ 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.] [Inserted by Notification No. LAD-NRO/GN/2009-10/30/199044. dated 19.3.2010 (w.e.f. 7.7.1999).](d)[ the credit rating agency shall at all times maintain a minimum net worth of rupees twenty five crore. [Inserted by Notification No. SEBI/LAD-NRO/GN/2018-15. dated 30.5.2018 (w.e.f. 7.7.1999).]Provided that a credit rating agency already registered with the Board under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, having a net worth less than rupees twenty five crores, shall, increase its net worth to the specified amount within a period of three years from the date of notification of the Securities and Exchange Board of India (Credit Rating Agencies) (Amendment) Regulations, 2018.(e)the promoter of the credit rating agency, in terms of regulation 4, shall maintain a minimum shareholding of 26% in the credit rating agency for a minimum period of three years from the date of grant of registration by the Board.Provided that this clause shall not be applicable to a credit rating agency already registered with the Board under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, at the commencement of Securities and Exchange Board of India (Credit Rating Agencies)(Amendment) Regulations, 2018.(f)[ a credit rating agency shall not carry out any activity other than the rating of securities offered by way of public or rights issue.Nothing contained in these regulations shall preclude a credit rating agency from rating of financial instruments under the respective guidelines of a financial sector regulator or any authority as may be specified by the Board.Provided that all other activities shall be segregated to a separate entity within a period of two years from the date of notification of Securities and Exchange Board of India (Credit Rating Agencies)(Amendment) Regulations, 2018.]]
