CRISIL Ltd, a diversified global analytics company, will transfer its ratings business to its proposed new wholly-owned subsidiary.

The board of CRISIL, on Wednesday, gave the nod for the transfer, which is being done to comply with SEBI norms of last year.

It may be recalled that SEBI had last year (in May and September) modified its regulations for credit rating agencies and mandated the segregation of rating and non-ratings businesses of credit-rating agencies.

CRISIL proposes to undertake the transfer of its ratings business through a scheme of arrangement in terms of Section 230 to 232 of the Companies Act, 2013, to be approved by the stock exchanges and the National Company Law Tribunal.

Also read:Crisil net falls 6.8 per cent to ₹ 76.6 cr in Jan-Mar quarter

This segregation will have no impact on CRISIL’s businesses, and the financial value to CRISIL’s shareholders will remain unchanged.

As the market leader for ratings in India, CRISIL covers more than 28,000 large and mid-scale corporates and financial institutions. Once the segregation process gets completed, ratings of all financial instruments under respective guidelines of the financial sector regulators and authorities will move into the new wholly-owned subsidiary. During the interim period, the ratings business will continue uninterrupted. CRISIL currently operates out of 9 countries, and has a 3,700-plus strong workforce.

S&P Global Inc (SPGI), CRISIL’s majority shareholder, remains committed to CRISIL and its businesses. SPGI will continue to hold majority shareholding in CRISIL Ltd, which will own 100 per cent of the subsidiary that will house the ratings business.

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