Leading rating agency, Credit Analysis and Research (CARE), said that the SEBI directive to rating agencies on disclosing the methodologies and fees charged from companies would bring greater transparency.
“We welcome this step. It is a very good initiative by SEBI and will bring greater transparency. We will ensure that we meet all its (SEBI) guidelines much before June 30,” CARE’s CEO and Managing Director, B Dogra, told PTI.
SEBI, in its disclosure guidelines, has mentioned that the credit rating agencies need to frame policies and a code of conduct to deal with issues related to conflict of interest between their analysts and entities being rated.
It has also said that rating agencies should make mandatory disclosures twice in a year.
As per the guidelines, the CRAs will have to maintain records of the important factors underlying the credit rating and a summary of discussions with all stakeholders involved as well as decisions of the rating committee, including voting details and notes of dissent.