The regulator has made these changes because of amendment done in rating agencies' norms,
said in a circular.
Under the norms, issuer of structured MLDs need to appoint a third party valuation agency which will be a credit rating agency (CRA) registered with
for carrying out valuation of MLDs. Pursuant to amendment to Sebi's rating agencies regulation on May 30, 2018, a CRA cannot carry out any activity other than rating of securities post May 30, 2020. Accordingly, the regulator has decided that valuation of MLDs will be carried out by an agency appointed by
for the purpose of carrying out valuation.
"It shall be mandatory for the issuer to appoint a third party valuation agency which shall be an
appointed valuation agency," the Securities and Exchange Board of India (Sebi) said.
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