SEBI proposes higher regulatory requirement of ownership for Credit Rating Agencies

Mumbai May 5 (IANS) The Securities and Exchange Board of India (SEBI) on Friday proposed higher regulatory requirement in terms of ownership governance and certain additional standards of essential accountability "Credit Rating Agencies Registrar to an Issue and Share Transfer Agents and Debenture Trustees".

According to SEBI the changes have been proposed by its committee under the Chairmanship of R. Gandhi Former Deputy Governor Reserve Bank of India to review the existing framework of MIIs (Market Infrastructure Institutions).

Currently stock exchanges depositories and clearing corporations are collectively referred to as securities MIIs.

"The committee based on the presentations made by the market intermediaries felt that these intermediaries do not meet majority of the criteria of MIIs " the committee s report said.

"However certain characteristics such as size concentration high dependence of investors on their services market share etc. make them significantly important."

Accordingly the regulator has called for public comments till May 19 on the recommendations made by the committee.

--IANS
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