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Regulations of Credit Rating Industry in India

ZebraPro Research June 9, 2021
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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’).

 

Source – ZebraResearch

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 –

Extract Source – Asian Bond market, Page no – 25

 

 

Extract Source – CRISIL IP, Page no – 26

 

Extract Source – Indian Bond Market By CARE Ratings, Page no – 31

 

Categories: Industry Sheet - Credit Rating Industry
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ZebraPro Research June 9, 2021
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