Exchange Board of India issued a circular containing Enhanced
Standards for Credit Rating Agencies. These seek to introduce greater
stringency in the operation of the rating industry. The areas covered include:
Criteria and rating processes and public disclosure of the same.
Press Release for rating actions.
evaluation of Rating Committees/Sub-Committees.
ratings in case of non-acceptance by an issuer.
case of delay in periodic review of ratings.
of non-co-operation by the issuer.
enhancing the relevance of Internal Audit of CRAs, viz. appointment and rotation
of auditors and scope of the audit.
required to implement these enhanced standards within 60 days from the date of
onerous requirements on rating agencies, some believe they
do not go far enough.