Section 29 in Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
29. Board's right to inspect.
(1)The Board may appoint one or more persons as inspecting officers, to undertake inspection or investigation of the books of account, records and documents of the credit rating agencies, for any of the purposes specified in sub-regulation (2).(2)The purposes referred to in sub-regulation (1) shall be the following, namely:(a)to ascertain whether the books of account, records and documents are being maintained properly;(b)to ascertain whether the provisions of the Act and these regulations are being complied with;(c)to investigate into complaints received from investors, clients or any other person on any matter having a bearing on activities of the credit rating agency;(d)in the interest of the securities market or in the interest of investors.(3)The inspections ordered by the Board under sub-regulation (1) shall not ordinarily go into an examination of the appropriateness of the assigned ratings on the merits.(4)Inspections to judge the appropriateness of the ratings may be ordered by the Board, only in case of complaints which are serious in nature.(5)Inspections referred to in sub-regulation (4) shall be carried out either by the officers of the Board or independent experts, with relevant experience or combination of both.
