Obligations on CRAs while undertaking rating of financial instruments falling under the purview of any other Financial Sector Regulator

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....uments falling under the purview of any other Financial Sector Regulator 1. Regulation 9 (f) of the SEBI (Credit Rating Agencies) Regulation, 1999 ("CRA Regulations") allow Credit Rating Agencies to rate financial instruments falling under the purview of any other financial sector regulator ("FSR"). 2. In cases where a CRA undertakes rating of instruments falling under the purview of any other financial sector regulator or Authority, then the CRA shall comply with the conditions specified as below - 2.1. Separation of Email ids for handling grievances and disclosures on website 2.1.1. CRA shall handle grievances related to SEBI regulated activities and grievances related to activities under the purview of other FSR(s....

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....ies. 2.3.3. Further, for all the activities under the purview of other FSR(s), the CRAs shall clearly disclose on its website, advertising or marketing material that the SEBI investor protection mechanisms and SEBI grievance/dispute redressal mechanisms will not be available for such activities. 2.4. Disclosures in rating reports and rating press releases/rating rationale 2.4.1. For all the rating reports and rating press release/rating rationale issued after the date of coming into effect of these provisions, a CRA shall ensure the following: 2.4.1.1. The rating reports and press releases/rating rationales shall mention the name(s) of the regulator(s) for such instruments. Also, such rating reports and p....

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....into effect of these provisions, a written intimation shall be sent to clients by the CRA specifying the nature of the activity, risks involved and non-availability of any SEBI investor protection mechanisms or SEBI grievance/dispute redressal mechanisms for such activities. Further, CRA shall confirm the compliance of the same to SEBI after sending intimations to all existing clients 2.6. Internal Audit Report Every CRA undertaking any activity regulated by other FSR(s) shall ensure that, in respect of such activities, it submits an undertaking as part of the half-yearly internal audit report, confirming compliance with the requirements of CRA Regulations and circulars issued in this regard. Such undertaking shall be duly....