Having addressed the specific issues on which I was supposed to 'brief', let me now turn to some other important issues. Rating agencies In terms of Basel II requirements, national supervisors are responsible in determining whether the rating agencies meet the eligibility criteria.
The criteria specified are objectivity in assessment methodology, independence from pressures, transparency, adequate disclosures, sufficient resources for high quality credit assessments and credibility. India has four rating agencies of which three are owned partly/wholly by international rating agencies. Compared to developing countries, the extent of rating penetration has been increasing every year and a large number of capital issues of companies has been rated.