Regulation 14 - Agreement with the client - Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

Agreement with the client 14. Every credit rating agency shall enter into a written agreement with each client whose securities it proposes to rate, and every such agreement shall include the following provisions, namely:- (a) the rights and liabilities of each party in respect of the rating of securities shall be defined; (b) the fee to be charged by the credit rating agency shall be specified; 2 [ (c) The client shall co-operate with the credit rating agency in order to enable the latter to carry out periodic review of the rating during the tenure of the rated instrument; ] (d) the client shall 3 [***] co-operate with the credit rating agency in order to enable the latter to arrive at, and maintain, a true and accurate rating of the clients securities and shall in particular provide to the latter, true, adequate and timely information for the purpose. (e) the credit rating agency shall disclose to the client the rating assigned to the securities of the latter through regular methods of dissemination, irrespective of whether the rating is or is not accepted by the client; (f) The client shall 4 [***] disclose, in the offer document;- (i) the rating assigned to the client s listed securities by any credit rating agency during the last three years and (ii) any rating given in respect of the client s securities by any other credit rating agency, which has not been accepted by the client. 1 [(g) the client shall 5 [***] obtain a rating for any issue of debt securities in accordance with the relevant regulations.] 6 [ (h) The client shall provide explicit consent to the credit rating agency to obtain the details related to their existing and/or future borrowing of any nature, its repayment and delay or default, if any, of any nature, in servicing of the borrowing, either from the lender or any other statutory/non-statutory organization maintaining any such information to enable the credit rating agency to have timely information on the same and to consider the impact of such information on the rating assigned by the credit rating agency. ] *********** NOTES:- 1 Substituted by the SEBI (Credit Rating Agencies) (Second Amendment) Regulations, 2011, w.e.f 27.12.2011. Prior to its substitution the clause read as under: (g) the client shall agree to obtain a rating from at least two different rating agencies for any issue of debt securities whose size is equal to or exceeds, rupees one hundred crores. 2. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/34 dated 23-09-2019 before it was read as (c) the client shall agree to a periodic review of the rating by the credit rating agency during the tenure of the rated instrument; 3. Omitted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/34 dated 23-09-2019 before it was read as agree to 4. Omitted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/34 dated 23-09-2019 before it was read as agree to 5. Omitted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/34 dated 23-09-2019 before it was read as agree to 6. Inserted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/34 dated 23-09-2019