Regulatory framework

 Elements

1. Registration
2. General obligations
3. Restrictions on the rating of securities
4. Procedure for inspection and investigation
5. Action in case of default
Regulatory framework (Registration)

1. Registration

i. Application with Rs 50,000

ii. Promoter
✓ Public financial institution
✓ Scheduled banks
✓ Foreign banks
✓ Foreign CRA with 5 yrs experience
✓ Any company with net worth of Rs 100 cr for 5 yrs
Regulatory framework (Registration)

iii. Eligibility criteria

- Company
- Rating activity in MoA
- Net worth of Rs 5 cr
- Infrastructure
- Promoters with professional competence
- Employees with necessary qualifications
- Applicant / Promoter : no legal proceeding
not convicted of any offence
Regulatory framework (Registration)

- Applicant/ person (associated/interconnected)

✓ refused registration by SEBI
✓ Proceeding against contravening SEBI Act
✓ Associate means -10% of voting rights
director/officer/employee

- Investor and security market

- Fit and proper person as per SEBI Intermediation

Regulations 2008
Regulatory framework (Registration)

iv. Initial/ Permanent registration

- Initial : Rs. 26,66,700

- Permanent : Rs. 10,00,000 + new information

- Fee: Rs 10,00,000 for 3 yrs

v. Conditions
- Comply with SEBI Act

- Inform : false/ misleading information

- Any changes
Regulatory framework (Registration)

- Report : amalgamation /demerger

change in director/MD/WTD
change in shareholding