Solution

The Securities and Exchange Board of India (SEBI) has issued a framework for dealing with suspension, cancellation or surrendering of license of credit rating agencies (CRAs) to ensure orderly migration of the ratings.The regulator has directed CRAs to disclose prominently on their website of SEBI’s order on suspension or cancellation. Further,they should allow their clients to withdraw any assignment given to the CRA, without any additional cost. Also, not take any new clients or fresh mandates. However, in case of suspension of certificate, the credit ratings assigned by the CRA shall not be valid during the period of suspension. SEBI Headquarters: Mumbai Chairman: Madhabi Puri Buch A credit rating agency is a company that reviews the creditworthiness of an entity that is in the process of or has already issued debt. The resulting credit ratings are used by investors to evaluate whether they should invest in debt securities.