In India, CRAs are regulated by the Securities Exchange Board of India SEBI. SEBI was one of the first regulators globally, to put forth a comprehensive framework for the regulation of CRAs through the SEBI (Credit Rating Agencies) Regulations, 1999 (‘CRA Regulations’).
Currently, SEBI only regulates the rating of debt securities. However, CRAs rate a vast variety of instruments, including bank loans, overdraft facilities, letters of credit. These other rating activities remain unregulated.
Comparative perspective of regulations –