SEBI opens new business avenues for credit rating agencies

Imagine a referee who makes sure companies that lend and borrow money play fair.

In India, that referee is called SEBI.

Credit rating agencies are like report-card makers for companies and governments that borrow money, giving them grades that show how safe it is to lend to them.

SEBI has now said these agencies can also grade other kinds of financial products that are watched by different referees.

To keep things clear, SEBI made new rules for these new grades.

Agencies must use separate email addresses and special pages on their websites for these products.

They also must say which referee is in charge of each product.

And they must tell people that SEBI's special safety rules do not apply to those products.

SEBI also added a new type of grade for city government bonds that shows how likely the money will be paid back.

These changes are meant to make the system fairer, clearer, and easier to understand for everyone.