SME Rating Agency of India

SMERA Ratings Ltd
Public
Founded 2005 [1]
Headquarters Mumbai, Maharashtra, India
Key people
 Mr. Sankar Chakraborti, CEO[2]
Services Ratings, Research and Advisory
Website Official Website

SMERA Ratings Ltd (SMERA) is a full service credit rating agency exclusively set up for micro, small and medium enterprises (MSME) in India and has grown to rate SME, mid & large corporate . It provides ratings which enable MSME, SMEs,Corporates to raise bank loans at competitive rates of interest.[3] However, its registration with Securities and Exchange Board of India (SEBI), as a Credit Rating Agency and accreditation by Reserve Bank of India (RBI), in September 2012 as an external credit assessment institution (ECAI) to rate bank loan ratings under Basel II guidelines has paved way for SMERA to rate/grade various instruments such as: IPO, NCDs, Commercial Papers, Bonds, Security Receipts, Fixed Deposits etc. In addition to this, RBI has told that Banks may use ratings of bank facilities (Bank Loan Ratings) from SMERA, to assign risks to loans for the purpose of computing capital adequacy requirements.[4]

History

The agency was founded in 2005 by Small Industries Development Bank of India (SIDBI),[5] Dun & Bradstreet Information Services India Private Limited (D&B) and several leading Govt., Public, Private and MNC banks in the country.[6]

Achievements

1) SMERA has pioneered SME ratings in the country and has till date completed over 38,000 ratings across sectors and geographies on a pan – India basis. SMERA Ratings have gained wide acceptability and are now an integral part of the risk assessment process within the lending and investing community.

2) The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) has awarded SIDBI with "Outstanding Development Project Award" for setting up SMERA. The award was given under the SME Development Category during the 30th ADFIAP Annual Meeting held on May 10, 2007 at Hanoi, Vietnam.[7]

3) SMERA has been registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 making it only the sixth rating agency in India to rate issues such as IPO, bonds, commercial papers, security receipts and others.[8]

4) SMERA is also accredited by Reserve Bank of India (RBI) as an external credit assessment institution (ECAI) to rate bank loan ratings under Basel II guidelines.

References

  1. ↑ Our Regional Bureau / Chennai September 06, 2005 (2005-09-06). "FM launches SME Rating Agency". Business-standard.com. Retrieved 2011-03-01.
  2. ↑ "Appointment of CEO" (PDF). SMERA. Retrieved 2014-07-17.
  3. ↑ "Financial Institutions and others". Finance Ministry. Retrieved 2011-02-26.
  4. ↑ http://articles.economictimes.indiatimes.com/2012-09-13/news/33817065_1_standardised-approach-risk-weights-smera
  5. ↑ Wednesday, Mar 28, 2007 at 0044 hrs IST (2007-03-28). "SME rating agency to expand operations in northern region". Financialexpress.com. Retrieved 2011-03-01.
  6. ↑ "SME Rating Agency of India Ltd.: Private Company Information". BusinessWeek. Retrieved 2011-02-21.
  7. ↑ "SMERA gets ADFIAP Award". Financial Express. Retrieved 2011-02-26.
  8. ↑ "SMERA receives SEBI registration". Business Line. Retrieved 2011-04-08.
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