Securities and Exchange Board of India(Credit Rating Agencies) (Amendment) Regulations, 2010
No. LAD-NRO/GN/2009-2010/30/199044 - In exercise of the powers
conferred by section 30 read with section 11 of the Securities
and Exchange Board of India Act, 1992 (15 of 1992), the Board
hereby makes the following regulations to further amend the
Securities and Exchange Board of India (Credit Rating Agencies)
Regulations, 1999, namely: -
1. These regulations may be called the Securities and Exchange
Board of India
(Credit Rating Agencies) (Amendment) Regulations, 2010.
2. They shall come into force on the date of their publication
in the Official Gazette.
3. In the Securities and Exchange Board of India (Credit
Rating Agencies)
Regulation, 1999: -
(i) in regulation 2, in sub-regulation (1), after clause
(e), the following clauses
shall be inserted, namely:-
‘(ei) “change of status or constitution”
in relation to a credit rating agency -
(i) means any change in its status or constitution of whatsoever
nature; and
(ii) without prejudice to generality of sub-clause (i), includes—
(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.
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;’
(ii) in regulation 9, in sub-regulation (1), after clause
(b), the following clause
shall be inserted, namely:-
“(c) where the credit rating agency proposes to change
its status or
constitution, it shall obtain prior approval of the Board
for continuing to act as
such after the change.”
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