SEBI issues guidelines to strengthen firewall between credit rating agencies and non-rating entities
The new rules include formulating a policy on separation with non-rating entities and document the same in their internal operational manuals. Further, the nature and extent of sharing of infrastructure, employees and resources between the CRA and the non-rating entity will be required to be specified.
The rules also ensure the independence of the credit-rating process in view of any such arrangements and provide guidance on sharing of resources by avoiding conflict of interest.