The credit rating agencies in India mainly include ICRA and CRISIL.

ICRA was formerly

referred to the Investment Information and Credit Rating Agency of India Limited. Their main
function is to grade the different sector and companies in terms of performance and offer
solutions for up gradation.

Functions of Credit rating agencies in India:

The credit rating agencies in India offer varied services like mutual consulting services, which
comprises of operation up gradation, risk management.

The have special sections to carry on research and development work of the industries. They
provide training to the employees and executives of the companies for better management. They
examine the risk involved in a new project, chalk out plans to fight with the problem successfully
and thus ameliorate the percentage of risk to a great extent. For this they carry on thorough
research into the respective industry. They have started offering services to the mutual fund
sector through the application of fund utilization services. The major industries currently graded
by the credit rating agencies include agriculture, health care industry, infrastructure, and
maritime industry.

Guidelines for Credit rating agencies in India:

The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 offers
various guidelines with regard to the registration and functioning of the credit rating agencies in
India. The registration procedure includes application for the establishment of a credit rating
agency, matching the eligibility criteria and providing all the details required. They have to
undergo the strict examination procedure with regard to the details furnished by them. They are
required to prepare internal procedures, abidance with circulars. They are offered guidelines
regarding the credit rating procedure, by the Act. The credit rating agencies are provided with
compliance officers. They are required to show their accounting records.

CRISIL:

CRISIL was set up in the year 1987 in order to rate the firms and then entered into the field of
assessment service for the banks. Highly skilled members manage the agency. Ms. Roopa Kudva
who acts as the Managing Director and Chief Executive Officer of the company heads it. The
company has set up large number of committees to look after dispersal of various services
offered by the company for example, investor grievance committee, investment committee,
rating committee, allotment committee, compensation committee and so on. The head office of
the company is located at Mumbai and it has established offices outside India also.

ICRA:

ICRA was established in the year 1991 by the collaboration of financial institutions, investment
companies, and banks. The company has formed the ICRA group together with its subsidiaries.
The company is headed by Mr. Piyush G. Mankad and offers products like short-term debt
schemes, Issue-specific long-term rating and offers fund based as well as non-fund based
facilities to its clients.