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| About CARE Ratings >> CARE's role in Indian Capital Market |
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| Capital Market, both primary and secondary segments, play a vital role in economic development because of its linkages with the banking systems and investment communities (including foreign capital flows). The vibrancy of capital market comes from its volume and varieties of trades of financial instruments, its liquidity and ability to raise capital by attracting fresh investments, which are derivatives of sound investor confidence and transparency. CARE is committed to play a key role by providing professional, insightful and independent informed opinion through various grading and rating services, which can serve as a valuable input to build investor confidence. |
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CARE’s credit rating for debt instruments (viz debentures, bonds, asset-backed securities etc) is a highly-valued credit risk opinion, which helps the investors to effectively monitor and manage investments based on their respective risk-return policies. On the other hand, it imparts the issuers with financial flexibility for wider access to funds at a market-determined cost related to their credit risk. It can also provide a helping hand for establishing business relationships (including collaborations) and awarding contracts to the counter parties.
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| CARE’s grading products viz IPO Grading and Equi-Grade have proved to be valuable means for primary and secondary market development respectively. IPO Grading, through its opinion on fundamentals, works as one of the important inputs to form long-term equity investment decision for public offerings. On the other hand, the investor community can have an unbiased and analytical opinion on the fundamentals and valuations of any listed entity through Equi-Grade product. |
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| For the regulators, CARE’s rating services facilitate in determining the eligibility criteria and entry barriers for different types of securities, to monitor financial soundness of borrowers and to promote overall efficiency in the debt market. Our Equi-Grade product can also be useful to the stock exchanges for investor education and improve liquidity in the secondary market. Thus, services of CARE increase the transparency, leading to a healthy development of the capital market. |
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