Operating Guidelines & Policies (Disclosure as per SEBI Circular SEBI/HO/MIRSD/MIRSD4/CIR/P/2016/119)
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Updated As On: 30 December 2016


INTRODUCTION

SEBI vide its circular SEBI/HO/MIRSD/MIRSD4/CIR/P/2016/119 directed all Credit Rating Agencies to disclose their operating policies and guidelines. This document outlines the relevant policies, guidelines, rating process and criteria applicable to all rating assignments that fall within the purview of SEBI Regulations and Circulars (executed by Acuité Bond Ratings division).

Any rating product or service that meets all the three conditions mentioned below shall come under the purview of these guidelines:

  • Ratings on public issues and right issue of securities (SEBI CRA Regulation,1999 ), other securities / instruments and loans / facilities provided by banks (SEBI circular, 2012)
  • Ratings assigned using a symbol standardized by SEBI (SEBI circular 2011)
  • Ratings assigned through a rating agreement entered into with the issuer (SEBI CRA Regulation,1999 )

In addition Issuer Ratings, will also be subject to these guidelines.


POLICIES & GUIDELINES GOVERNING RATING PROCESS

Acuité follows stringent policies and guidelines to ensure independence, quality, timeliness and objectivity in assigning ratings that are unbiased.

RATING CRITERIA

Acuité has well defined rating criteria and methodologies, models that form the analytical basis for all the ratings assigned. The rating criteria and methodologies are approved by the Rating Criteria Committee and is reviewed every year. These criteria help the analyst to ensure that all ratings can be benchmarked against a common reference.

APPLICABLE REGULATORY GUIDELINES