Market Brief: Strategic Expansion of Credit Rating Framework The Securities and Exchange Board of India (Sebi) has implemented a significant regulatory shift as of **February 2026**. Credit Rating Agencies (CRAs) are now authorized to rate a wider array of financial instruments, including unlisted securities and products overseen by other financial sector regulators. To support this expansion, Sebi has introduced a strict "additional net worth" mandate. Agencies must maintain a core minimum net worth of **₹25 crore**, which must remain untouched by any non-Sebi activities. Any capital requirements imposed by other regulators—such as the RBI or IRDAI—must be maintained as a separate, additional buffer. Structural and Operational Segregation The new framework demands a total firewall between Sebi-regulated activities and those under other jurisdictions. Agencies are required to implement: * **Distinct Digital Presence:** Separate webpages and dedicated email IDs for different regulatory grievance handling. * **Transparent Branding:** Clear labeling in all marketing and rating reports to show which regulator governs the instrument. * **Mandatory Disclosures:** Explicit statements in rating agreements that Sebi’s investor protection and grievance mechanisms do not apply to non-Sebi products. Market Context and Growth Trends This move arrives as India’s credit market shows robust momentum. Major agencies like ICRA and CRISIL have reported strong financial performance in the first half of **FY2026**. ICRA saw a **24.4%** rise in profit after tax for H1 FY26, reaching **90.8 crore**, while CRISIL’s rating revenue grew by **20%** year-on-year. The expansion into unlisted debt is expected to bridge a massive market gap. Retail asset management for NBFCs is projected to cross **₹30 lakh crore** by **FY2027**, and the ability to provide holistic ratings for conglomerates—covering both their listed and unlisted entities—provides a more accurate risk profile for large-scale investors. Economic Backdrop India's macroeconomic stability continues to anchor this regulatory confidence. Real GDP growth for **FY2026** is forecasted at **6.5%**, with CPI inflation expected to moderate to **2.5%** by March 2026. Credit growth remains healthy, projected to stay between **11.5% and 12.5%** through the next fiscal year. By allowing CRAs to explore these "adjacent" business lines, Sebi aims to foster industry synergies while ensuring that the core safety of the listed securities market is not compromised by the risks associated with unlisted or private debt instruments.