Section 40 in Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
40. Effect of suspension and cancellation of registration of credit rating agency.
(1)On and from the date of suspension of the certificate of registration, the credit rating agency shall cease to carry on any rating activity during the period of suspension and shall be subject to such directions of the Board with regard to any records, documents securities or reports that may be connected with in its rating activities, as the Board may specify.(2)On and from the date of cancellation of the certificate of registration, the credit rating agency shall: -(a)cease to carry in any rating activity and(b)shall be subject to such directions of the Board with regard to the transfer of records, documents, securities or reports connected with its rating activities which may be in its custody or control as the Board may specify.(3)Notwithstanding the suspension or cancellation of certificate of a credit rating agency, if the Board is satisfied that it is in the interest of the investors to grant such permission, the Board may grant to the credit rating agency permission to carry on such activities relating its assignments undertaken prior to such suspension or cancellation, as the Board may specify.
