Procedure for Registration of Credit Rating Agency (CRA) with SEBI

Priya Gandhi

Priya Gandhi

Published on: Feb 3, 2026

Ravi Singh

Updated on: Feb 7, 2026

★★★★★(3 Ratings)

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To register a Credit Rating Agency (“CRA”) with the Securities and Exchange Board of India (“SEBI”), an applicant must follow a structured procedure and meet specific eligibility criteria outlined in the SEBI (Credit Rating Agencies) Regulations, 1999 read with SEBI Master Circular for Credit Rating Agencies.

Eligibility Criteria to become Credit Rating Agency (CRA):

Applicable Provisions

1. Regulation 3, 4, 5, 6, 7, 8, 9 of SEBI (Credit Rating Agencies) Regulations, 1999
2. Para 1 of Master Circular for Credit Rating Agencies

Procedure

1. Promoter Eligibility Requirements:

   The applicant must be promoted by a person/entity belonging to one of the following categories:

   • Public Financial Institution (PFI): As defined in Section 2(72) of the Companies Act, 2013
   • Scheduled Commercial Bank (SCB): Included in the Second Schedule to the Reserve Bank of India Act, 1934
   • Foreign Bank Operating in India: Must have the necessary approval from the Reserve Bank of India (RBI)
   • Foreign Credit Rating Agency:
     • Must be incorporated in a Financial Action Task Force (FATF) member jurisdiction
     • Must be recognized under the laws of that jurisdiction
     • Must have a minimum of five years’ experience in rating securities
   • High Net Worth Company/Body Corporate:
     • Must have a continuous minimum net worth of Rs. 100 crores (Rupees One Hundred Crore)
     • This net worth must be maintained as per its audited annual accounts for the previous five years prior to filing the application with SEBI.
2. Filing of Application

   Application must be made online to SEBI, in Form A (Application for Grant of Certificate of Registration), through SEBI Intermediary Portal, available at the weblink: (https://siportal.sebi.gov.in), along with:

   • Supporting documents mentioned in the First Schedule, and
   • Prescribed non-refundable fee, as specified in Part A (Amount to be Paid as Fees) of the Second Schedule, which must be paid using the method specified in Part B of the same Schedule.

   Note:

   • User Manual for Registration is available at https://siportal.sebi.gov.in/intermediary/index.html
   • Applicants must pay the required fees via direct bank credit through the online SEBI Payment Gateway.
3. Opportunity to Comply Rectifying Deficiencies:

   SEBI will:

   • Reject any application that is incomplete or fails to meet the specified regulatory requirements (Regulation 5 or Form A instructions)
   • Provide the applicant an opportunity to remove the objections, before rejection, initial time limit for which is thirty days, from the date, communication from SEBI, is received
   • Ask the applicant for any further information or clarification, it deems necessary to properly process the application
   • Optionally request the applicant or their authorized representative, to appear before SEBI, for a personal interview or representation, regarding the certificate application.

   Note: If the applicant shows sufficient reason, SEBI may extend the time to fix the objections, which cannot be more than an additional thirty days.

4. Grant of Certificate of Registration:
   • SEBI, once satisfied with eligibility, grants the certificate of registration, in Form B (Certificate of Registration) and informs the applicant
   • Such certificate is valid indefinitely, unless it is later suspended or cancelled by SEBI
   • Grant of the certificate requires the payment of registration fees, as specified in the Second Schedule.
5. Key Note Points for CRAs
   • Primary function is restricted to rating listed or proposed-to-be-listed securities, though other rating activities, specified by other financial regulators, can be performed, provided all such non-core activities are segregated into a separate entity.
   • Expert opinions on the relative risk, of a borrower failing, to meet their future debt service obligations, can be offered.
   • Creditworthiness using alphanumeric symbols ranging from AAA (Highest Safety) to D (Default), often including “+” or “-” modifiers to show relative standing within a category, is denoted by CRAs.
   • Ratings are derived from a rigorous analysis, of company fundamentals and financials, integrated with a broad assessment of industry trends and the prevailing macro-regulatory environment.
   • Rating symbols are customized based on the debt instrument’s nature and maturity profile, with distinct scales applied to long-term and short-term obligations.

Ravi Singh

ACS, LL.B

Ravi Singh (ACS, LL.B) is a corporate governance and compliance professional with nearly nine years of experience in insurance and BFSI sector. He has worked with leading organizations including ICRA Limited, Max Life Insurance, Dish TV India Limited (Essel Group), and Shalimar Paints Limited (Jindal Group), with expertise across insurance regulations, CRA regulations, listed entity compliances, ESG frameworks, and regulatory interface with IRDAI and SEBI.