Currently, CRAs are primarily limited to rating listed or proposed-to-be-listed securities or instruments under the specific guidelines of other financial sector regulators (FSRs). SEBI proposes allowing CRAs to undertake rating of non-regulated financial products or instruments such as unlisted securities under specific conditions. These conditions include compliance with the respective FSR’s regulatory framework (if any) for policy, risk management, and grievance redressal. The proposed changes also mandate that CRAs undertake only fee-based, non-fund based rating activities, operating them through separate business units (SBUs) with “Chinese Walls” to segregate them from SEBI-regulated activities. The comments/ suggestions from stakeholders are invited.