In its continuous effort to streamline regulatory processes and promote ease of doing business in the Indian securities market, the Securities and Exchange Board of India (SEBI) has operationalized a comprehensive online registration system for market intermediaries, including Credit Rating Agencies (CRAs). This initiative enhances transparency, improves efficiency, and simplifies the entire lifecycle of registration and compliance for CRAs.
Centralized Portal for Online Applications
Under Chapter I: Registration Requirements, SEBI has mandated that all CRA-related applications—whether for registration, surrender, modification, or periodic reporting—must now be submitted exclusively through the SEBI Intermediary Portal (https://siportal.sebi.gov.in). This portal offers a one-stop digital solution for:
Registration applications
Requests for surrender or cancellation
Periodic reporting
Changes in name, address, or other details
Communication and clarification management
While the process is digital, physical copies of essential declarations or undertakings must still be submitted separately for recordkeeping purposes. This dual approach maintains regulatory robustness without compromising on processing speed.
Handling Changes in Control
All SEBI-registered CRAs are required to obtain prior approval from SEBI in case of any change in control. For CRAs holding multiple registrations, only a single consolidated application is required. This application must be addressed to the Chief General Manager, DDHS, SEBI, and should include comprehensive details about:
The CRA itself
The acquiring entity
Directors or partners of the acquiring entity
This process ensures SEBI is fully informed of the change in control and can verify the credentials of all involved parties before granting approval.
Surrender, Cancellation, and Suspension Protocols
SEBI has laid out a detailed framework for CRAs wishing to surrender, cancel, or in cases of suspension, temporarily cease operations. Key obligations include:
Clients must be allowed to withdraw assignments at no extra cost.
Affected CRAs must assist in the orderly migration of credit ratings to other SEBI-registered CRAs.
The CRA must continue complying with regulations and directives until winding up is completed.
All records and documents must be submitted upon request within the stipulated timelines.
Upon cancellation or surrender, the CRA must return its certificate of registration, cease representing itself as a registered CRA, and stop issuing new credit ratings. Importantly, credit ratings previously issued remain valid until the client voluntarily withdraws the assignment or successfully migrates to another CRA.
Impact on Issuers and Listed Entities
Listed companies and issuers relying on credit ratings must note that once a CRA’s certificate is surrendered, suspended, or cancelled, it can no longer be used for regulatory compliance under SEBI norms. A replacement rating from a valid SEBI-registered CRA must be obtained.
To facilitate this migration, specific paragraphs (12.1 to 12.5 and 11.9.2) from the SEBI Master Circular for CRAs will not apply in such cases, streamlining the transition for affected issuers.
Conclusion
SEBI’s online registration mechanism and structured procedures for surrender, cancellation, and control changes mark a significant advancement in regulatory infrastructure. By embracing digitization and setting clear expectations, SEBI is not only reducing administrative burdens but also reinforcing regulatory discipline among CRAs. For stakeholders—whether they are CRAs, issuers, or investors—these measures provide greater transparency, accountability, and confidence in the Indian credit rating ecosystem.