INTERNAL AUDIT FOR CRAs

It has been decided in consultation with the credit rating agencies (CRAs) that the audit envisaged under Regulation 22 of the SEBI (Credit Rating Regulations), 1999 shall include an internal audit to be undertaken in the following manner:

• It shall be conducted on a half yearly basis.
• It shall be conducted by Chartered Accountants, who are in practice and who do not have any conflict of interest with the CRA.
• It shall cover all aspects of CRA operations and procedures, including investor grievance redressal mechanism, compliance with the requirements stipulated in the SEBI Act, Rules and Regulations made there under, and guidelines issued by SEBI from time to time.