External Rating Committee
Members of the External Rating Committee shall be persons of repute who have long
experience in the fields of finance, Banking, Management etc.
Internal Rating Committees
Officers who have significant experience in finance, banking and Management are
eligible to be members of senior level rating committees as well as to Chair such
Committees. The senior rating analysts may also chair the lower level rating committees.
Rating analysts who are well qualified/ have professional qualification and have
reasonable exposure to finance and Banking are eligible to be members of lower level
Each Rating committee will have minimum three members including designated chairpersons.
All committees require a minimum quorum of three. In case of External Rating Committee,
the quorum shall consist of a minimum of two external members and further, a decision
which has the majority voting of the external members shall prevail.
Duties of committee members
The Rating Committee members are expected to critically evaluate the proposal, be
unbiased, exercise appropriate judgment and take an overall view and help the Committee
arrive at a reasonable and fair rating. If they have a conflict of interest in respect
of any agenda they should declare the nature of such interest and recuse themselves
from participating in the meeting relating to that subject. They are also expected
to point out deficiencies if any in the presentation of the case and may seek additional
information and ensure a well informed decision is taken by the Committee.
System of voting
Before commencing the agenda in the Rating Committee, the chairman will record the
attendance of eligible members, ensure requirement of quorum is met. The Chairman
shall ensure compliance with aspects of conflict of interest before taking up the
subject. If the decision of the committee on a subject is unanimous, it shall be
recorded accordingly. However, in case any member/members express dissent, the decision
shall be put to vote and shall be decided on the majority voting. The Chairman shall
record the number of members voting for the proposal, the number voting against
and the number, if any, who abstained from voting. The name of the dissenting member/s
and the reasons for dissent shall be duly recorded. Similarly the name of member
who abstained from voting shall also be recorded. The Chairman shall ensure that
proceedings in the meeting are appropriately captured in the minutes.
Managing conflict of interest in the Rating Committee
The Chairperson will call the meeting to order and confirm if any one present has
conflict of interest before taking up any agenda. Any member/participant who has
any conflict of interest in the subject to be taken up, shall disclose the nature
of his interest and recuse himself from participating in the meeting. Accordingly,
the Chairman shall ensure that conflict of interest issue, if any, is appropriately
captured in the minutes.