Regulation of Credit Rating Agencies in India
An analysis of the adequacy of the regulatory framework governing credit rating agencies
Summary: The Report examines the role of credit ratings in the financial system and highlights concerns regarding the regulation of credit rating agencies in India and makes recommendations to improve their functioning.
Credit Rating Agencies form an essential part of the financial markets. SEBI has regulated them since 1999. However, in the years following the financial crisis, specific concerns have been raised regarding their regulation globally, as well as in India.
This report highlights the concerns regarding the regulation of credit rating agencies in India, examines the solutions adopted by regulators in other jurisdictions, and makes recommendations to strengthen the regulatory framework in India.