Restrictions on Rating of Securities Issued by Promoter and Certain Entities, Connected with
A Promoter, or Rating Agency :

Credit rating agency shall not rate a security issued by its promoter. In case promoter is a sending institution, its chairman, director or employee shall not be a chairman, director or employee of credit rating agency or its rating committee. No credit rating agency should rate a security issued by an entity, which is a borrower of its promoter or a subsidiary of its promoter or an associate of its promoter, if there are common Chairman, Directors between credit rating agency and these entities, there are common employees, there are common Chairman, Directors, Employees on the rating committee. No credit rating agency should rate a security issued by its associate or subsidiary, if the credit rating agency or its rating committee has a Chairman, director or employee who is also a Chairman, director or employee of any such entity. However, the Credit Rating Agency may, rate a security issued by its associate having a common independent director with it or rating committee if, –

(i) such an independent director does not participate in the discussion on rating decisions, and

(ii) the Credit Rating Agency makes a disclosure in the rating announcement of such associate (about the existence of common independent director) on its Board or of its rating committee, and that the common independent director did not participate in the rating process or in the meeting of its Board of Directors or in the meeting of the rating committee, when the securities rating of such associate was discussed.