I kind of understand the second reason to shut down the company, but the first one is honestly braindead. If we assume people are somewhat rational, just not having them in the same room doesn't change the incentive structure for collusion. Collusion is inevitable no matter if they are in the room or not.
The second factor - not updating the rating on time- is a function of cost and dependence on the company or trustee to duly notify the agency on time. Most intermediaries rely on the parties to notify them of the events first and I think no-one is independently checking things unless their own money is on the time. If they do independently monitor - or do a re-rating - they'll have to charge the company for that.
Forget all the compliance part as pointed out by SEBI.
In last 5 years rating advisory or credit rating consultant has grown up in the country like mushrooms every City metro or tire 2 3 4 cities every where, now i would like to understand what is this consultancy means when the rating is done on merits of Audited books & operational information and this consultant promises upgrade "how" & charges a hefty consultancy fees
I kind of understand the second reason to shut down the company, but the first one is honestly braindead. If we assume people are somewhat rational, just not having them in the same room doesn't change the incentive structure for collusion. Collusion is inevitable no matter if they are in the room or not.
Loved the read, very informative
The second factor - not updating the rating on time- is a function of cost and dependence on the company or trustee to duly notify the agency on time. Most intermediaries rely on the parties to notify them of the events first and I think no-one is independently checking things unless their own money is on the time. If they do independently monitor - or do a re-rating - they'll have to charge the company for that.
Well articulated 💯💯
When anyone pointing finger to someone remember four fingers are pointed towards himself
Forget all the compliance part as pointed out by SEBI.
In last 5 years rating advisory or credit rating consultant has grown up in the country like mushrooms every City metro or tire 2 3 4 cities every where, now i would like to understand what is this consultancy means when the rating is done on merits of Audited books & operational information and this consultant promises upgrade "how" & charges a hefty consultancy fees