MUMBAI: Care Ratings Ltd and Acuité Ratings & Research Ltd have joined forces to form a body representing the rating agency industry. The Association of Indian Rating Agencies (Aira) will work closely with the market regulator and the government for the development of the debt market, a press release said.
The industry body was incorporated as a Section 8 (non-profit) corporation. Besides Care Ratings and Acuité Ratings & Research as founding members of the association, the process of inducting two other rating agencies is currently underway, he said. Aira has also written to the three other rating agencies inviting them to join the association as shareholder-members.
“The rating industry, in active collaboration with and facilitated by the Securities and Exchange Board of India (Sebi), has taken several steps to improve credit rating standards in the country. rating standards improvement program and to help build trust with investors and issuers, a few rating agencies have come together to form an industry association,” the statement said.
Currently, seven credit rating agencies are registered with Sebi and combine the ratings of more than 57,000 entities. However, there was no association to collectively represent the industry.
According to Ajay Mahajan, Managing Director and CEO of Care Ratings Ltd, the new association which represents the industry aims to engage thoroughly and constructively with all stakeholders including regulators and policy makers for the orderly development of the debt market with the increased use of credit. rating.”
“The association will work with all stakeholders to improve the availability and flow of information needed for ratings and to raise awareness of best practices adopted by the industry. We believe Aira will act as a bridge between all stakeholders,” said Sankar Chakraborti, Group CEO and Executive Director of Acuité Ratings & Research Ltd.
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