SEBI Expands Horizons for Credit Rating Agencies Beyond Traditional Debt

Regulatory adjustments by SEBI have successfully unlocked new business avenues for credit rating agencies, shifting their functional scope past traditional debt ratings [1]. Data covering the 2025-26 period shows that SEBI-registered agencies evaluated a total of 725 new issuances [1]. Among these entities, CRISIL played a dominant role by accounting for nearly half of all fresh ratings assigned during the period [1]. Furthermore, quality metrics strengthened, with 88.4% of all outstanding ratings classified as investment grade as of March 31, 2026, marking an improvement over the previous year [1].

The expansion granted by SEBI allows rating agencies to diversify their operational models away from a strict reliance on conventional debt evaluation [1]. The strong volume of 725 new issuances assigned during 2025-26 demonstrates healthy capital market activity [1]. Additionally, the high concentration of investment-grade ratings—reaching 88.4% as of March 31, 2026—highlights an overall improvement in the credit quality of rated portfolios compared to the preceding year [1].

For investors, the opening of new business avenues means rating agencies could develop alternative revenue streams outside standard debt instruments [1]. The robust proportion of investment-grade securities (88.4% as of March 31, 2026) provides market participants with a clearer view of portfolio safety [1]. Furthermore, dominant players like CRISIL—which secured nearly half of all fresh ratings—demonstrate strong operational positioning within the sector [1].

While new business avenues offer growth potential, dependence on regulatory frameworks remains a structural variable for credit rating agencies [1]. Shifts in broader macroeconomic conditions could impact the volume of new issuances, which stood at 725 for 2025-26 [1]. Additionally, maintaining high investment-grade proportions (such as the 88.4% recorded as of March 31, 2026) depends heavily on corporate financial health and macroeconomic stability [1].

• SEBI has officially opened new business avenues for credit rating agencies beyond traditional debt [1].
• A total of 725 new issuances were assigned ratings by SEBI-registered agencies during 2025-26 [1].
• CRISIL accounted for nearly half of all fresh ratings during the period [1].
• Investment-grade ratings improved over the previous year, reaching 88.4% of all outstanding ratings as of March 31, 2026 [1].

• CRISIL

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