The Securities and Exchange Board of India, (SEBI) on July 19, 2024, issued a notification regarding enabling Credit Rating Agencies (CRAs) to undertake rating activities under IFSCA.
In Para 25 of the Master Circular for CRAs dated May 16, 2024, provides that CRAs may undertake the rating of financial instruments under the respective guidelines of the financial sector regulators/ authorities. To enable CRAs to undertake rating activities in the International Financial Services Centre - Gujarat International Finance Tech-city (IFSC-GIFT City), the International Financial Services Centres Authority (IFSCA) is hereby added to the list of financial sector regulators/ authorities as specified in Annexure 19 of the aforesaid Master circular.
In line with the above provision, it is specified that the ratings undertaken by a CRA under the guidelines of IFSCA shall be under the purview of IFSCA. Accordingly:
•Any issue arising from the activities of such SEBI registered CRAs in the IFSC shall be dealt with by IFSCA under the powers exercisable under Sections 12 and 13 of the IFSCA Act and regulations and subsidiary instructions made thereunder.
•IFSCA shall be responsible for dealing with complaints, enforcement actions and furnishing information to third parties, including statutory or judicial bodies, in respect to the services provided by the CRAs in the IFSC.
[Notification No. SEBI/HO/DDHS/DDHS-POD3/P/CIR/2024/102]
