Photo: Aniruddha Chowdhury/MintMumbai: The Securities and Exchange Board of India (Sebi) has proposed capping cross-holding among credit rating agencies (CRAs) at 10%, and suggested stringent net worth and ownership criteria. The regulations also state that even an individual shareholder cannot have a 10% (or more) stake in two rating agencies at the same time. Currently there is no restriction on shareholding in rating agencies. Sebi has proposed raising the minimum net worth required to start a credit agency to Rs50 crore. Existing credit raters will be given three years to bring their net worth to this level, the paper said.

Source: Mint September 08, 2017 14:50 UTC