Overview

• SEBI’s consultation paper would let CRAs rate financial instruments under regulators like RBI and IRDA even without explicit rating guidelines
• Firms must transfer non-SEBI rating activities into separate business units within six months, each with dedicated staff and grievance redressal
• Board-approved Chinese-wall mechanisms are required to govern any staff movement between SEBI-regulated and non-SEBI units
• CRAs must protect SEBI-mandated minimum net worth from risks of unlisted ratings and clearly disclose those activities with investor disclaimers
• Market participants and stakeholders have until July 30 to submit feedback on the proposed framework