Regulations of Credit Rating Industry in India

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


Related Articles

Market Size of Credit Rating In India

The market size of Credit Rating Industry in India is directly related to the size of the overall bond market. The Credit Rating Industry Size should be understood as a percentage of overall bond market.

FY20 Bonds Issued in India – 309,332 (INR Billion)

Revenue of top 3 rating agencies in India from Rating and allied services in FY20 – Rs. 1002 crores.


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