The International Financial Services Centres Authority (IFSCA) on August 05, 2025, has released a new Master Circular for Credit Rating Agencies operating in the IFSC. The circular, which supersedes the previous one from October 1, 2024, provides a consolidated regulatory framework for the registration, regulation, and supervision of these agencies under the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2025. All actions, applications, and decisions made under the previous circular will be considered valid under the new one. This directive comes into effect immediately.
IFSC outlines the regulatory framework for their operations, superseding a previous circular. It details a comprehensive set of rules covering the registration process, including applications through the SWIT system and specific provisions for SEBI-registered CRAs. The document also specifies permissible activities, governance requirements, a code of conduct, and guidelines for KYC, AML, and CFT. A significant portion is dedicated to credit rating activities, covering the operations manual, rating criteria, process, scales, and the monitoring and dissemination of ratings, as well as addressing conflicts of interest and confidentiality. The circular further includes provisions for valuation services, outsourcing, complaint handling, change in control, and mandatory periodic reporting and annual compliance audits, along with requirements for cybersecurity and the process for surrendering registration.
[Notification No. IFSCA-PLNP/80/2024-Capital Markets]
