The Indian Council for Securities and Exchange (SEBI) has issued a proposal to clarify and expand the scope of activities that may be carried out in India, especially in areas regulated by other bodies of the financial sector. The proposals are open for public comments by July 30.
Currently, SEBI rules limit CRAS to the assessment of securities that are listed or proposed as introducing on recognized exchanges. However, CRA is not prohibited from evaluating other financial products, if permitted according to the instructions of other regulatory bodies of the financial sector (FSR), such as India Reserve Bank of India (RBI) or Regulatory and IRDA Development (IRDA).
The industry pointed to the regulatory gap: financial products within other FSRS are missing specific evaluation instructions. This has led to confusion about whether CRAS can evaluate such products such as non -precluded securities.
The new consulting document of SEBI seeks to solve this ambiguity and responds to feedback from the parties involved, who believe that the CAS to evaluate a wider range of products would bring synergies and fill an important gap on the market.
Sebi is considering allowing CAS to evaluate financial instruments according to jurisdiction of other FSR, although these regulators have not issued explicit instructions for rating. However, this widespread role comes with strict conditions for investors and transparency.
CRAS must ensure that the existing non -collected activities are converted to a separate business unit (SBU) within six months of the new rules. Each SBU must have its own complaints mechanism, separately from the mechanism for self-regulated activities.
SBUS must maintain their own records and employ employees different from those dealing with the work of a regulated self -self -self -self -self -self -self -contained. The movement of employees through the Chinese wall is only allowed with the correct procedures approved by the board.
The minimum net assets required for CRA according to SEBI regulations must be protected from risks arising from regulated activities without Sebi. CRAS must clearly publish all non -regulated activities on their website and related evaluation reports together with the exclusion of responsibility that SEBI investors are not used.
Market participants, investors and other participating parties must share their views by July 30.
(Tagstotranslate) Sebi
