Securities and Exchange Board of India (SEBI), through Master Circular No. SEBI/HO/DDHS/DDHS-POD2/P/CIR/2025/101 dated July 11, 2025, has issued a consolidated circular for Credit Rating Agencies (CRAs). The circular compiles all operational and procedural guidelines that were previously issued under the SEBI (Credit Rating Agencies) Regulations, 1999. It aims to provide easier access to applicable regulations in a single document for CRAs, issuers of non-convertible securities, securitized instruments, municipal debt securities, commercial papers, and related stakeholders including stock exchanges and depositories.
The Master Circular includes chapter-wise details of various directions and clarifications issued over time. It also supersedes multiple individual circulars listed in the appendix. However, it clarifies that actions taken under the earlier circulars—such as ongoing applications, penalties, rights, or obligations—will remain valid as if the rescinded circulars are still in force for those specific instances.
This update has been issued under the powers vested in SEBI by Section 11(1) of the SEBI Act, 1992, read with Regulation 20 of the CRA Regulations, 1999. The objective is to streamline compliance, promote transparency, and maintain consistency in regulatory practices related to credit rating operations. The Master Circular serves as a reference point for all existing norms and will aid in enhancing regulatory efficiency for all market participants involved with credit ratings.
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Securities and Exchange Board of India
Master Circular No. SEBI/HO/DDHS/DDHS-POD2/P/CIR/2025/101| Dated: July 11, 2025
To,
All Registered Credit Rating Agencies,
All Registered Debenture Trustees,
Issuers who have listed and/or propose to list Non-Convertible Securities, Securitized Debt Instruments, Security Receipts, Municipal Debt Securities or Commercial Paper
Recognized Stock Exchanges,
All Depositories registered with SEBI
Dear Sir / Madam,
Subject: Master Circular for Credit Rating Agencies
I. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 (“CRA Regulations”) prescribes guidelines for registration of Credit Rating Agencies (CRAs), general obligations of CRAs, manner of inspection and investigation and code of conduct applicable on CRAs. Multiple circulars have been issued, over the years, covering the operational and procedural aspects thereof.
II. In order to enable the industry and other users to have access to all the applicable circulars/ directions at one place, Master Circular for CRAs has been prepared.
III. This Master Circular is a compilation of the existing circulars as on date, with consequent changes. The stipulations contained in these circulars have been detailed chapter-wise in this master circular. Accordingly, the list of existing circulars for CRAs which have been superseded by this Master Circular is placed at Appendix.
IV. Notwithstanding such rescission-
a. anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;
b. any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;
c. the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violation committed against the rescinded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded circulars have never been rescinded.
V. This circular is issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 20 of Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.
VI. This issues with the approval of the Competent Authority.
Yours faithfully,
Ritesh Nandwani
Deputy General Manager
Department of Debt and Hybrid Securities
Tel No.022-2644-9696
Email ID – riteshn@sebi.gov.in
