Government of pakistan securities and exchange commission of pakistan notification

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same to the securities exchange, the Commission, State Bank of Pakistan, , 
Mutual Fund Association of Pakistan, Pakistan Banking Association, NBFI 
and Modaraba Association of Pakistan and publish the same on its website 
for public information. The default notes must describe the definition of 
default, the reasons for the defaults, historical transitions and the factors 
overlooked, if any, by the credit rating company;
(l) 
publish annually, within one month of calendar year, a comprehensive 
default and transition study developed in line with methodologies practiced 
by credit rating agencies globally. The annual default and transition study 
must contain cumulative default rates (CDRs) and transitions for each rating 
grade for periods 1, 3 and 5 years; 
(m) 
ensure strong firewalls to prevent disclosure or use of the said non-public 
information by the related parties or their personnel in cases where a credit 
rating company is a parent, subsidiary, joint venture partner or affiliate of 
any organization that might benefit from the non-public information 
available with the credit rating company;
(n) 
formulate necessary code of conduct for its employees regarding handling 
of the non-public information which should contain as a minimum the 
requirements set out in Annexure I;
(o) 
except as required under these regulations and without obtaining prior 
written approval of its customers, not share with or disclose to media or any 
other party including its other customers, any confidential information 
about its customers, which has come to its knowledge in the course of the 
rating process;
(p) 
clearly indicate the attributes and limitations of each rating and to the extent 
to which it has verified information provided by the rated entity;
(q) 
prohibit its employees and analysts from soliciting money, gifts or favors 
from anyone with whom the credit rating company conducts business;
(r) 
ensure that an analyst or employee has not had a recent employment or other 
significant business or personal relationship with the rated entity that may 
cause or may be perceived as causing a conflict of interest;
(s) 
observe a disengagement period of minimum two years between the 
notification of the unsolicited rating and acceptance of the assignment of 
the solicited rating, where an unsolicited rating becomes a solicited rating;
(t) 
ensure that any advertisement is written in clear language and is not such 
which may prejudice interest of any person or investors in general;

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(u) 
maintains principal of integrity in seeking rating business; and
(v) 
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[intimate the Commission at the time of] 
offering of any new rating 
product/services.