The Securities and Exchange Board of India (SEBI) has notified the Credit Rating Agencies (Amendment) Regulations, 2026, broadening the scope of activities permitted for CRAs. The amendment allows them to rate financial instruments under other regulators’ jurisdiction, ensuring compliance with respective guidelines while strengthening transparency and investor confidence.
The Securities and Exchange Board of India has introduced significant changes to the Credit Rating Agencies Regulations through its 2026 amendment. Effective from January 13, 2026, the amendment modifies Regulation 9(f) of the 1999 framework, expanding the permissible activities of credit rating agencies (CRAs).
Key highlights from the announcement include
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Amendment broadens scope of CRAs to rate instruments under other financial regulators.
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Such ratings must comply with guidelines issued by the concerned regulator or authority.
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CRAs can undertake additional activities specified by SEBI, enhancing operational flexibility.
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Supervisory jurisdiction for ratings remains with the respective financial sector regulator.
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Move aims to strengthen investor confidence and ensure greater transparency in ratings.
The amendment addresses industry concerns about restrictions on rating certain instruments, such as unlisted securities, where guidelines were previously absent. By clarifying the scope and supervisory framework, SEBI ensures that CRAs can contribute more effectively to market development while maintaining accountability.
Sources: TaxGuru, Simpliance, SEBI Notification