Cancellation or suspension of CRA registration halts regulatory recognition of its ratings and mandates orderly migration to other registered CRAs. From the date of order or surrender request, a CRA must disclose the action, stop new mandates, permit client withdrawal and facilitate migration to other SEBI-registered CRAs; continue cooperation with SEBI and provide records until wound up. On surrender acceptance or winding up the CRA must return the certificate, cease representing itself as registered, suspend rating activity and make liability provisions. Cancellation leaves ratings valid until client withdrawal/migration or winding up; surrender leaves ratings valid until client withdrawal/migration or SEBI acceptance; suspension renders ratings invalid during suspension. Issuers must obtain ratings from other registered CRAs for regulatory compliance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cancellation or suspension of CRA registration halts regulatory recognition of its ratings and mandates orderly migration to other registered CRAs.
From the date of order or surrender request, a CRA must disclose the action, stop new mandates, permit client withdrawal and facilitate migration to other SEBI-registered CRAs; continue cooperation with SEBI and provide records until wound up. On surrender acceptance or winding up the CRA must return the certificate, cease representing itself as registered, suspend rating activity and make liability provisions. Cancellation leaves ratings valid until client withdrawal/migration or winding up; surrender leaves ratings valid until client withdrawal/migration or SEBI acceptance; suspension renders ratings invalid during suspension. Issuers must obtain ratings from other registered CRAs for regulatory compliance.
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