Former SEBI (The Securities and Exchange Board of India) Chairman U. K. Sinha made a very truthful statement:
"Rating agencies should not start behaving like some of the independent directors, who leave a company when there is a crisis. There are several examples of independent directors the first thing they do is to resign from the Company. Somebody has to ask what were you doing when the situation deteriorated. So if the rating company feels that something has gone wrong and matter is known so they downgrade it and they think there job is over, this is not fair."
The above statement is valid for not only Independent Directors , Credit rating agencies but also to Statutory Auditors.
(start from 08:13 - for statement on rating agencies)
I believe rating agencies, Securities, Stock exchange etc. should not be allowed to list. They should not join the bandwagon of quarterly reporting. The Chief Executive Officers will focus on how his shares (allotted through ESOPs - Employee Stock Options) gives him maximum value.
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