Government of pakistan securities and exchange commission of pakistan notification

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Provided further that this restriction shall not apply to a director of a credit rating company 
nominated as a director of an entity by the Federal Government or a Provincial Government or an 
institution which is directly or indirectly owned or controlled by the Federal Government or a 
Provincial Government.
(3) 
A credit rating company must not accept a rating assignment where a person 
directly or indirectly, holding more than 10% of share capital of the credit rating company also 
holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating 
or of the entity which issued the instrument subject to rating by the credit rating company.
(4) 
[Any change in credit rating company’s shareholding that entitles the shareholder 
to more than ten per cent (10%) shareholding shall require prior written approval of the 
Commission]
21
(5) 
No director, officer or employee of the credit rating company shall communicate 
the information, acquired by him for use for rating purposes, to any other person except where 
required under law to do so.
(6) 
A proposed director, chairman or chief executive of the credit rating company shall 
not assume the charge of office until its appointment has been approved by the Commission in 
writing. The application for seeking approval of the Commission shall be submitted by the credit 
rating company along with the requisite information required under the Fit and Proper Criteria 
along-with the undertakings specified therein:
Provided that the existing credit rating company shall take prior approval from the 
Commission for re-appointment of its existing chief executive and its board of directors.
(7) 
A credit rating company shall not,-
(a) 
rate its own instruments;
(b) 
hold or transact in trading instruments presenting a conflict of interest with credit 
rating company;
(c) 
rate its associated companies and undertakings or the instruments issued by them, 
[except as explicitly provided in these regulations;]
22
(d) 
disclose or discuss with outside parties or make improper use of the non-public 
information which has come to its knowledge during business relationship with the 
customer;
21 Substituted for the text “A credit rating company shall not change its shareholding without written approval of the Commission” 
vide S.R.O. 1755(I)/2022 dated September 19, 2022 
22 Inserted text vide S.R.O. 1755(I)/2022 dated September 19, 2022 

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