Shareholding restrictions in credit rating agencies bar cross ownership and board seats, with limited approval and institutional exemptions. A credit rating agency must not hold ten per cent or more shareholding or voting rights in, or have board representation on, any other credit rating agency; the Board may permit acquisition beyond the threshold only where it effects change of control and is approved in the interests of investors, market integrity and stability. Shareholders holding ten per cent or more in a credit rating agency are barred from holding comparable stakes in any other credit rating agency, except for pension funds, insurance schemes and mutual fund schemes.
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Provisions expressly mentioned in the judgment/order text.
Shareholding restrictions in credit rating agencies bar cross ownership and board seats, with limited approval and institutional exemptions.
A credit rating agency must not hold ten per cent or more shareholding or voting rights in, or have board representation on, any other credit rating agency; the Board may permit acquisition beyond the threshold only where it effects change of control and is approved in the interests of investors, market integrity and stability. Shareholders holding ten per cent or more in a credit rating agency are barred from holding comparable stakes in any other credit rating agency, except for pension funds, insurance schemes and mutual fund schemes.
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