The RBI has approved SMERA (SME Credit Rating Agency of India Ltd.) as an eligible External Credit Assessment Institution (ECAI) under the Basel norms.
The RBI decided that banks may also use the ratings of the SMERA for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing five domestic credit rating agencies. The rating-risk weight mapping for the long term and short term ratings assigned by SMERA will be the same as in case of other rating agencies. SMERA was launched in September 2005 and is approved by:
- Securities Exchange Board of India – (SEBI)
- National Small Industries Commission – NSIC, under MSME Ministry – GOI for undertaking MSME Ratings.
- Directorate General of Shipping, Ministry of Shipping – GOI for grading of Maritime Training Institutes.
SMERA is also a member of Association of Credit Rating Agencies in Asia – (ACRAA) and a member of the Business Information Industry Association Asia Pacific – Middle East Limited (Hong Kong).
SMERA provides rating and grading services that are comprehensive, transparent, reliable and timely to enable investors make better decisions. SMERA is promoted by institutions of repute such, as: Small Industries Development Bank of India – (SIDBI), Dun & Bradstreet (D&B) and various government, public, private and foreign banks.
To read the full press release click on the link: RBIGrantsapprovalSMERA