The board of directors of Crisil has approved the transfer of the ratings business to a 100% subsidiary of Crisil. This has been done to comply with the rules laid down by the Securities and Exchange Board of India (SEBI), which state that rating and non-rating businesses of credit rating agencies have to be segregated.
“This segregation will have no impact on Crisil’s businesses and the financial value to Crisil’s shareholders will remain unchanged,” Crisil said in a statement.
Seamless process
“The segregation process will be seamless and on completion, ratings of all financial instruments under respective guidelines of the financial sector regulators and authorities will move into the wholly owned subsidiary. During the interim period, the ratings business will continue uninterrupted,” it added.
Meanwhile, the transfer would be undertaken through a scheme of arrangement under the Companies Act and will have to be approved by the stock exchanges and the National Company Law Tribunal.
