Effect of Refusal to Grant Certificate :

An applicant whose application for the grant of certificate of permanent registration has been either refused or rejected should not undertake any rating activity. An applicant, whose application for the grant of a certificate has been refused by SEBI, should on and from the date of the receipt of the communication ceases to carry on any rating activity. If SEBI is satisfied that it is in the interest of the investors, it may permit the credit rating agency to complete the rating assignments already entered into by it, during the pendency of the application or period of validity of the certificate. SEBI in order to protect the interest of investors may issue directions with regard to the transfer of records, documents or reports relating to the activities of a credit rating agency, whose application for the grant of a certificate of initial or permanent registration. SEBI may appoint any person to take charge of the records, documents or reports relating to the rating activities of a credit rating agency and for this purpose also determine the terms and conditions of such apointment has been rejected.