Besides, the different categories did not fully internalise the consequences of their individual actions in the overall process, and therefore did not have the right incentives to share information efficiently. In particular, investors became over-reliant on the ratings provided by the rating agencies and often did not properly conduct their due diligence.
Crisil Limited, India’s leading ratings, financial news, risk and policy advisory company, provided the technical assistance and has acquired a 9% stake in the agency and its Managing Director and CEO is on the Board of the rating agency. Crisil will continue to provide the assistance to the Agency to ensure the stability of the operations.