Page 254 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Unit 17: Credit Rating

9. neither the applicant, nor any person directly or indirectly connected with the applicant Notes
has in the past been -
(a) refused by the Board a certificate under these regulations or

(b) subjected to any proceedings for a contravention of the Act or of any rules or
regulations made under the Act.

Notes For the purpose of this clause, the expression "directly or indirectly connected
person" means any person who is an associate, subsidiary, inter-connected or group/
company of the applicant or a company under the same management as the applicant.

10. the applicant, in all other respects, is a fit and proper person for the grant of a certificate;
11. grant of certificate to the applicant is in the interest of investors and the securities market.

!
Caution The Securities and Exchange Board however, does not consider an application
unless the applicant is promoted by a person belonging to any of the following categories,
namely:
1. a public financial institution, as defined in section 4 A of the Companies Act, 1956
(1 of 1956);
2. a scheduled commercial bank included for the time being in the second schedule to
the Reserve Bank of India Act, 1934 (2 of 1934);
3. a foreign bank operating in India with the approval of the Reserve Bank of India;
4. a foreign credit rating agency recognised by or under any law for the time being in
force in the country of its incorporation, having at least five years experience in
rating securities;
5. any company or a body corporate, having continuous net worth of minimum rupees
one hundred crores as per its audited annual accounts for the previous five years
prior to filing of the application with the Board for the grant of certificate under
these regulations.

The main credit rating agencies in India are:
1. Credit Rating Information Services of India Limited (CRISIL)
2. Investment Information and Credit Rating Agency of India (ICRA)
3. Credit Analysis & Research Limited (CARE)

4. Duff & Phelps Credit Rating India Private Ltd. (DCR India)
5. ONICRA Credit Rating Agency of India Ltd.
Let us know a brief about each of them.

Credit Rating Information Services of India Limited (CRISIL)

Established in 1987, CRISIL is India's leading Ratings, Research, Risk and Policy Advisory
company. CRISIL delivers opinions and solutions that:
1. Make markets function better, and

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