(REGULATION 13)

1. A credit rating agency in the conduct of its business shall observe high standards of integrity and fairness in all its dealings with its clients.

 

2. A credit rating agency shall fulfil its obligations in an ethical manner.

 

3. A credit rating agency shall render at all times high standards of service, exercise due diligence, ensure proper care and exercise independent professional judgement. It shall wherever necessary, disclose to the clients, possible sources of conflict of duties and interests, while providing unbiased services.

 

4. The credit rating agency shall avoid any conflict of interest of any member of its rating committee participating in the rating analysis. Any potential conflict of interest shall be disclosed to the client.

 

5. A credit rating agency shall not indulge in unfair competition nor shall they wean away client of any other rating agency on assurance of higher rating.

 

6. A credit rating agency shall not make any exaggerated statement, whether oral or written, to the client either about its qualification or its capability to render certain services or its achievements in regard to services rendered to other clients.

 

7. A credit rating agency shall always endeavour to ensure that all professional dealings are effected in a prompt and efficient manner.

 

8. A credit rating agency shall not divulge to other clients, press or any other party any confidential information about its client, which has come to its knowledge, without making disclosure to the concerned person of the rated company.

 

9. A credit rating agency shall not wilfully make untrue statement or suppress any material fact in any documents, reports, papers or information furnished to the Board.

 

9. A credit rating agency shall not generally and particularly in respect of issue of securities rated by it be party to -

11. A credit rating agency shall maintain an arm’s length relationship between its credit rating activity and any other activity.

 

1. A credit rating agency shall abide by the provisions of the Act, rules and regulations and which may be applicable and relevant to the activities carried on by the credit rating agency.