Firewall between Credit Rating Agencies and their Affiliates

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..... tions, 1999 ("CRA Regulations") provide for a principle-based regulation of Credit Rating Agencies (CRAs) focusing inter alia on prevention of conflict of interests. Regulation 13 of the CRA Regulations require CRAs to abide by the Code of Conduct contained in the Third Schedule. II. Further, CRA Regulations inter alia required CRAs to segregate certain activities to a separate entity under Regul .....

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..... her such arrangement is temporary. ii. Measures taken by CRA to ensure the independence of its credit rating process in view of the above arrangement with the non-rating entity. iii. Guidance to employees on sharing of information or resources, if any, between the CRA and the non-rating entity in order to mitigate any potential or actual conflict of interest. B. A CRA shall disclose on its w .....

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..... hall be separate. A CRA's website may contain hyperlinks to the separate websites of the non-rating entities. IV. Applicability: The circular shall be applicable with effect from January 1, 2023, and CRAs shall report on their compliance with this circular (as ratified by their respective board of directors) to SEBI within one quarter from the date of applicability of this circular. V. Monitorin .....

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