Madhya Pradesh - Register Credit Rating Agency with SEBI

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Procedure

Apply In-Person

1. To Register a Credit Rating Agency with SEBI, the applicant has to approach the nearest office of the Security Exchange Board of India – link
2. An application form will be provided to the applicant by the concerned officer. Or the applicant has to download the application form from the following link – link
3. The applicant must fill in all the necessary details in the application form. (Incomplete applications are not accepted)
4. Make sure that the applicant has attached all the necessary documents that are mentioned in the “Required Documents” section of this page.
5. The applicant must attach the photocopies of the required documents along with the application form while submitting.
6. Submit all the documents with the completed form to the concerned officer.
7. The applicant must pay the prescribed fee as mentioned in the “Fees” section of this page.
8. After receiving the application, the concerned authority will check the submitted application and document set. If all are in place, the application will be accepted.
9. All applications are processed within a reasonable time, having regard to the circumstances of each application, including the completeness of information and documents submitted to the authority by the applicant.
10. The authority may seek additional information from an applicant if this is necessary to assess the application. The authority does not need to deal further with an application until the applicant provides this information.
11. If the application is approved, SEBI will issue a certificate of registration to the CRA.
12. This entire process can be completed within 30 – 90 days or as per the timeline advised by the respective department authority.

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Required Documents

• Application form for CRA registration (Form A) link
• Company's registration certificate
• Audited financial statements for the last three years
• Certificate from a chartered accountant certifying the net worth of the company
• Details of the directors and their professional profiles
• Infrastructure certificate or a document stating the adequacy of infrastructure to run the activities of the CRA
• Fit and proper certificate for the directors
• Declaration by the applicant that it has not been convicted of any financial crime

Office Locations & Contacts

SECURITY EXCHANGE BOARD OF INDIA
Indore Local Office
Address:
104-105, Satguru Parinay, Opposite C-21 Mall,
A.B. Road,
Indore - 452010, Madhya Pradesh
Tel. Board: +91-0731-2557002
E-mail: [email protected]
Toll-Free Investor Helpline: 1800 22 7575
Contact Details – link

Eligibility

The eligibility criteria for applying for a credit rating agency (CRA) registration in India are as follows:

• The applicant must be a company registered under the Companies Act, 2013.
• The company must have a net worth of at least Rs. 5 crore.
• The company must have adequate infrastructure to support the activities of a CRA. This includes having a team of qualified analysts and researchers, as well as access to financial data and analytical tools.
• The company must have a fit and proper board of directors. This means that the directors must be experienced in the financial sector and have a good reputation.
• The company must comply with all applicable laws and regulations.

Fees

• The fee to apply for a credit rating agency (CRA) registration in India is Rs. 50,000.
• The fee is non-refundable and is payable at the time of submitting the application form. The fee is used to cover the costs of processing the application and the costs of evaluating the applicant.

Validity

• The registration of a CRA is valid for five years. The CRA must apply for renewal of its registration every five years.

Documents to Use

• Application form – link

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• This entire process can be completed within 30 -90 days or as per the timeline advised by the respective department authority.

Related Videos

Videos explaining the procedure or to fill the applications.
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Instructions

• Applicants must complete the application form before submitting it. Only complete applications will be accepted.
• Applicants must provide genuine information while applying for this procedure.

Required Information

• Name of the applicant
• Pan number
• Address
• Email
• Telephone
• Date of birth
• Gender
• Details of Company
• Details of partners and directors
• Details of employees

Need for the Document

• A credit rating agency (CRA) is a company that assigns credit ratings to debt issuers. A credit rating is a measure of the creditworthiness of an issuer, which is its ability to repay its debt obligations. Credit ratings are used by investors to assess the risk of investing in a particular debt security.

Information which might help

The board shall not consider the regulations unless the applicant is promoted by a person belonging to any of the following categories:

• A Public Financial Institution
• A Scheduled Commercial Bank
• A Foreign Bank Operating in India with RBI approval
• A foreign Credit Rating Agency having at least five years’ experience in rating securities and recognized by the laws for the time being in force in the country of its incorporation.

Other uses of the Document/Certificate

Please explain what are other uses for obtaining this document/certificate.

e.g. Birth Certificate can be used as proof of identity.

External Links

link

Others

• The credit rating process involves a thorough analysis of the issuer's financial statements, business operations, and management team. The CRA will also consider the issuer's industry and the economic environment.

Credit ratings are assigned on a scale, with the highest rating being AAA and the lowest being D. The rating scale is as follows:

• AAA: Highest credit quality
• AA: Very high credit quality
• A: High credit quality
• BBB: Good credit quality
• BB: Speculative grade
• B: Speculative grade
• CCC: Speculative grade
• DDD: Highly speculative
• D: Default
• Credit ratings are important for investors because they provide a measure of the risk of investing in a particular debt security. Investors can use credit ratings to compare different debt securities and to select the securities with the lowest risk.
• Credit ratings are also crucial for issuers because they can affect the cost of borrowing. Issuers with higher credit ratings will typically pay lower interest rates on their debt.