With a view to strengthen the functioning of CRAs and to harmonise the best practices in the industry,SEBI constituted a committee on �Strengthening the Guidelines and Raising Industry Standards for Credit Rating Agencies (CRAs)�, which included representatives from all the CRAs. The objective of the Committee was to deliberate upon measures and guidelines to bring about greater transparency in the policies of the CRAs, enhance the standards followed by the industry and, thereby, facilitate ease of understanding of the ratings by the investors.
With a view to implementing the recommendations of the said Committee, SEBI has issued circular on Enhanced Standards for Credit Rating Agencies (CRAs)
The circular covers the following broad areas:
I. Policy in respect of non-co-operation by the issuer
II. Accountability and managing conflict of interest
III. Standardization of format of Press Release� Press Release to include Rating action and Outlook, details of the instrument, key rating drivers, rating history, reference to applicable criteria, contact details of Rating Analyst etc.
IV. Disclosures on website of CRA of :
The circular is available on the website: www.sebi.gov.in