Sebi Introduces New Framework for CRAs Rating Instruments Regulated by Other FSRs

• Sebi has issued a comprehensive framework for Credit Rating Agencies (CRAs) that rate financial instruments regulated by other Financial Sector Regulators (FSRs).
• The new regulations aim to ensure clearer segregation of activities, disclosures, and investor protection mechanisms.
• CRAs must establish distinct operational, disclosure, and grievance-handling mechanisms for Sebi-regulated activities and those under other FSRs.
• Separate email IDs and website sections are required for grievances and disclosures related to Sebi-regulated activities versus those under other FSRs.
• CRAs must disclose that Sebi's investor protection and grievance redressal mechanisms do not apply to activities regulated by other FSRs.