Start with Search - Type your requirement here

Friday, August 6, 2010

Change of status or constitution or control of Credit Rating Agency requires prior approval of SEBI - CRA amendment 2010

CIR/MIRSD/CRA/7/2010 dated 13th May 2010 read with Gazette Notification No. LAD-NRO/GN/2009-2010/30/199044 dated 19th March 2010 and issue of SEBI (CREDIT RATING AGENCIES) (AMENDMENT) REGULATIONS, 2010

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 51% of voting rights in the body corporate;’

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 SEBI for continuing to act as such after the change.”

0 comments:

Post a Comment

CS Updatin...

See Yes -> Yes, ACS

↑ Grab this Headline Animator