Section 9 in Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
9. Conditions of certificate [***] [Omitted 'and validity period' by Notification No. F.No LAD-NRO/GN/2011-12/10/21232. dated 5.7.2011 (w.e.f. 7.7.1999).]-
The certificate granted under regulation 8 [or 8A] [Inserted by Notification No. F.No LAD-NRO/GN/2011-12/10/21232. dated 5.7.2011 (w.e.f. 7.7.1999).]shall be, subject to the following conditions, namely:(a)the credit rating agency shall comply with the provisions of the Act, the regulations made there under and the guidelines, directives, circulars and instructions issued by the Board from time to time on the subject of credit rating.(b)(1) where any information or particulars furnished to the Board by a credit rating agency;(i)is found to be false or misleading in any material particular ; or(ii)has undergone change subsequently to its furnishing at the time of the application for a certificate;the credit rating agency shall forthwith inform the Board in writing.(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.]]
