NEW DELHI: India Inc should not drag credit rating agencies into courts and allow the domination of due process of assessment, as expressed by SEBI Chairman UK Sinha.
“My message to corporates is that if they are raising money, they should be willing to follow the rules of the game,” Sinha said on the sidelines of a securitisation summit here.
Yesterday, rating agencies had held a meeting with SEBI wherein they are understood to have told the capital markets regulator about the difficulties they are facing because of litigation from some corporates.
The concerns of rating agencies' comes up as corporates, which are mandated to rate themselves, tend to pull an agency into court because of their discomfiture with the rating and commentary thereof.
According to rating agencies, litigation expenses eat into the fees it charges from the particular corporate for the rating.
“India is one of first countries, where the credit rating agencies are regulated. Off and on, we issue guidelines, our aim is to protect the investor interest," he added.