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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSDL - Reiteration of SEBI Circular on Obligations on CRAs while undertaking rating of financial instruments falling under the purview of any other Financial Sector Regulator

13-Feb-2026 | NSDL/POLICY/2026/0023

NSDL has reiterated the SEBI circular regarding the obligations of Credit Rating Agencies (CRAs) while undertaking the rating of financial instruments that fall under the purview of any other Financial Sector Regulator (FSR), effective from April 10, 2026.

Through the circular, SEBI has specified certain obligations that must be complied with by CRA while undertaking the rating of instruments regulated by other financial sector regulators or authorities.

A few of the key requirements are outlined below:

1. The agency must ensure that the minimum net worth requirement of Rs. 25 crore, as specified under the SEBI (Credit Rating Agencies) Regulations, 1999, is not adversely impacted due to the undertaking of rating activities falling under the purview of other FSRs.

2. It is required to disclose on its website a list of all activities carried out, along with the name of the regulator governing each such activity.

3. An undertaking must be submitted as part of the half-yearly internal audit report confirming compliance with the provisions of the CRA Regulations and the circular for activities undertaken under the purview of other FSRs.

4. An upfront written disclosure must be provided to clients informing them that such activities fall under the regulatory purview of other FSRs, at the time of engaging with clients for such activities.

5. Grievances relating to SEBI-regulated activities and those relating to activities under the purview of other FSRs must be handled through distinct and separate email IDs. Additionally, separate webpages or clearly demarcated sections on the website must be maintained for related disclosures. This requirement is coming into effect from 12 months from the date of issuance of the circular, i.e., by February 10, 2027.

Kindly refer to the attached document for further details.

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