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Project on Credit Rating Industry in India !!
Excerpt from the project :
Excerpt from the project :
The Ratings industry in India has been built up to its present position over a period of fifteen years. Over the years, credit ratings have evolved into a 90-crore market, with four agencies providing rating services, and significant pull from investors for the product. The ratings business in India has seen three phases. During the first of these phases, as described above, there was no experience of credit ratings, and virtually no awareness, on the part of investors and issuers.
The second phase saw the advent of regulatory support for credit ratings, with the introduction and increasing rigour of regulations covering primarily the markets for public issue of debt and for fixed deposits. Aimed at protecting smaller investors, these measures also amounted to regulatory recognition of the role of credit ratings and the quality of the effort put in till then, in estimating credit quality. With these measures, credit ratings rapidly passed out of the arcane realm of high finance, and into the lexicon of the individual market participant. This phase also saw the arrival of competition, in the form of other domestic agencies entering the market.