MD and CRA CEOs will not be members of rating committees, says Sebi
New Delhi, November 4 () The managing director and the executive directors of the credit rating agencies will not be members of their rating committee, Sebi said Monday by setting standards for better governance and accountability of the credit rating agencies.
The rating committees of the credit rating agencies (CRA) will inform a qualification director, Sebi said in a circular.
Regarding the composition of the board of directors of a CRA, Sebi said that one third of the board will be composed of independent directors if it is chaired by a non-executive director.
In the event that the board is chaired by an executive director, half of the board will be composed of independent directors.
The board of a CRA will constitute the Subcommittee on Qualifications and the Appointments and Remuneration Committee, and the latter will be chaired by an independent director, the regulator said.
The director of qualifications has been asked to report directly to the CRA board's subcommittee on qualifications. In addition, Sebi has requested credit rating agencies to meet with the audit committee of the qualified entity at least once a year to discuss matters that include transactions with related parties, internal financial control and other important disclosures made by management. which are related to the qualification of the non-convertible obligations listed. SRS HRS