Section 24A in Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
24A. [ Shareholding in a credit rating agency. [Inserted by Notification No. SEBI/LAD-NRO/GN/2018-15. dated 30.5.2018 (w.e.f. 7.7.1999).]
(1)A credit rating agency shall not:(a)directly or indirectly, hold 10 per cent or more shareholding and/ or voting rightsin any other credit rating agency, or(b)have representation on the Board of any other credit rating agency.Provided that a credit rating agency may, with the prior approval of the Board,acquire shares and/ or voting rights exceeding 10 per cent in any other credit ratingagency only if such acquisition results in change in control in the credit ratingagency whose shares are being acquired. On the basis of the prior approval soughtby the acquirer, the Board may approve the acquisition in the interest of investors,market integrity and stability.(2)A shareholder holding 10 per cent or more shares and/ or voting rights in a creditrating agency shall not hold 10 per cent or more shares and/ or voting rights,directly or indirectly, in any other credit rating agency.Provided that the said restriction shall not apply to holdings by Pension Funds,Insurance Schemes and Mutual Fund Schemes.Explanation: - For the purpose of this regulation, a "credit rating agency" means a credit rating agency registered with the Board.]
