On July 09, 2025, the Securities and Exchange Board of India (“SEBI”) has released a consultation paper seeking public comments on proposed amendments to the SEBI (Credit Rating Agencies) Regulations, 1999 (“CRA Regulations”).[1] The proposed amendments aim to strengthen the regulatory framework governing the activities of Credit Rating Agencies (“CRAs”), particularly in relation to ratings outside the purview of SEBI.
Under existing CRA Regulations, CRAs are permitted to rate only securities that are listed or proposed to be listed on SEBI-recognized stock exchanges. CRAs may rate other products/ securities/ issuers if such ratings are permitted under the guidelines of another Financial Sector Regulator (“FSR”) or as specified by SEBI. SEBI has received industry feedback regarding ratings of financial instruments under the purview of other FSRs, where specific rating guidelines have not been issued.
SEBI proposes a framework to address the regulatory gap for CRA activities that currently fall outside SEBI’s direct oversight. Stakeholders are invited to provide their views, suggestions, and comments via email to SEBI latest by July 30, 2025. These proposed regulatory updates are part of SEBI’s broader initiative to ensure accountability, transparency, and consistency in credit rating practices across the financial ecosystem.
[1]https://www.sebi.gov.in/reports-and-statistics/reports/jul-2025/consultation-paper-on-measures-for-regulation-of-activities-of-credit-rating-agencies-cras-_95142.html