Section 2 in Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
2. Definitions.
(1)In these regulations, unless the context otherwise requires-(a)"Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992);(b)"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;(c)"Board" means the Board as defined in clause (a) of sub-section (1) of section 2 of the Act;(d)"body corporate" means a body corporate as defined in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956);(e)"certificate" means a certificate of [Initial or permanent registration granted] [Substituted 'registration granted or renewed' by Notification No. F.No. LAD-NRO/GN/2011-12/10/21232. dated 5.7.2011 (w.e.f. 7.7.1999).]by the Board under these regulations;(ei)[ "change of status or constitution" in relation to a credit rating agency - [Inserted by Notification No. LAD-NRO/GN/2009-10/30/199044. dated 19.3.2010 (w.e.f. 7.7.1999).](i)means any change in its status or constitution of whatsoever nature; and(A)amalgamation, demerger, consolidation or any other kind of corporate restructuring falling within the scope of Section 391 of the Companies Act, 1956 (1 of 1956) or the corresponding provision of any other law for the time being in force;(B)change in its managing director or whole-time director; and(C)any change in control over the body corporate;(eii)"change in control", in relation to a credit rating agency being a body corporate, means : -(i)if its shares are listed on any recognised stock exchange, change in control as defined under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997;(ii)in any other case, change in the controlling interest in the body corporate.(ii)without prejudice to generality of sub-clause (i), includes -Explanation: - For the purpose of sub-clause (ii), the expression "controlling interest" means an interest, whether direct or indirect. to the extent of at least fifty-one per cent of voting rights in the body corporate;](f)"client" means any person whose securities are rated by a credit rating agency;(g)"company" means a company incorporated under the Companies Act, 1956 (1 of 1956);(h)"credit rating agency" means a body corporate which is engaged in, or proposes to be engaged in, the business of rating of securities offered by way of public or rights issue;(i)"economic offence" means an offence to which the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), is applicable for the time being;(j)"enquiry officer" means any officer of the Board, or any other person, who is authorised by the Board under Regulation 38;(k)"form" means any of the forms specified in the First Schedule:(l)"fraud" has the same meaning as is assigned to it by section 17 of the Indian Contract Act, 1872 (9 of 1872);(m)"group companies" means group companies as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969);(n)"inspecting officer" means any one or more persons appointed by the Board under reregulation 29:(o)"issuer" means a person whose securities are proposed to be rated by a credit rating agency;(p)"net-worth" means the aggregate value of the paid up equity capital and free reserves (excluding reserves created out of revaluation), reduced by the aggregate value of accumulated losses and deferred expenditure not written off, including miscellaneous expenses not written of;(q)"rating" means an opinion regarding securities, expressed in the form of standard symbols or in any other standardised manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with a requirement specified by these regulations;(r)"rating committee" means a committee constituted by a credit rating agency to assign rating to a security;(s)"regulation" means a regulation forming part of these regulations;(t)"relative" means a relative as defined in section 6 of the Companies Act, 1956 (1 of 1956);(u)"schedule" means any of the schedules appended to these regulations; and(v)"securities" has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.(2)Words and expressions used and not defined in these regulations, but defined in the Act, shall have the meanings respectively assigned to them in the Act.
