SEBI Expands Horizons for Credit Rating Agencies Beyond Traditional Debt

Securities and Exchange Board of India (SEBI) regulatory adjustments have created fresh business avenues for credit rating agencies, permitting them to look past traditional debt rating scopes [1]. Alongside this regulatory shift, market activity for credit raters remained robust through 2025-26. Agencies registered under SEBI evaluated 725 new issuances during the period [1]. Industry dominance was heavily skewed toward top players, with CRISIL alone accounting for roughly half of all fresh ratings assigned [1]. Portfolio quality also strengthened, evidenced by investment-grade ratings reaching 88.4% of all outstanding ratings by the close of March 2026 [1].

The opening of new business avenues diversifies revenue streams for credit rating agencies, lessening their historical reliance on conventional corporate debt issuance cycles [1]. Additionally, the sheer volume of 725 new issuances handled in 2025-26 highlights underlying corporate capital-raising activity [1]. An elevated proportion of investment-grade ratings—standing at 88.4% as of March 31, 2026—suggests a relatively healthy underlying credit profile across rated portfolios compared to the preceding year [1].

For market participants, the expansion into non-traditional avenues could alter the growth profiles of credit rating firms, shifting them from cyclical debt-dependent plays toward broader analytical service providers [1]. The concentration of nearly half of all fresh ratings within a single entity, CRISIL, underscores varying market share distributions [1]. Meanwhile, the high concentration of investment-grade credits (88.4%) provides transparency on aggregate portfolio risk profiles as of March 2026 [1].

While regulatory expansions offer growth opportunities, the concentration of market activity among top players like CRISIL leaves smaller agencies potentially exposed to competitive pressures [1]. Diversification into new business avenues also brings execution risks as firms adapt to unproven service lines outside traditional debt ratings [1]. Furthermore, credit quality metrics can shift rapidly in response to broader macroeconomic pressures, threatening the high investment-grade concentration observed in March 2026 [1].

• SEBI has unlocked new business avenues for credit rating agencies outside traditional debt [1].
• A total of 725 new issuances were rated by SEBI-registered agencies during 2025-26 [1].
• CRISIL accounted for nearly half of all fresh ratings assigned in the period [1].
• Investment-grade securities formed 88.4% of total outstanding ratings as of March 31, 2026, improving over the prior year [1].

• CRISIL

### What new business avenues are available for credit rating agencies? SEBI has opened new business avenues for credit rating agencies that extend beyond traditional debt ratings [1]. ### How many new issuances were rated in 2025-26? SEBI-registered credit rating agencies assigned ratings to 725 new issuances during the 2025-26 period [1]. ### What market share did CRISIL capture in fresh ratings? CRISIL accounted for nearly half of all fresh ratings assigned during 2025-26 [1]. ### What percentage of outstanding ratings were investment grade as of March 31, 2026? As of March 31, 2026, 88.4% of outstanding ratings were investment grade, showing improvement over the previous year [1].