Individual Investors’ Perception towards Credit Rating Agenceis in India With Special Reference to Erode and Coimbatore District

Abstract

The present study was conducted in Erode and Coimbatore districts to analyse the perceptions of the individual investors about credit rating agencies and its impact on credit ratings for instruments in particular. There are only a few studies are available on the impact of credit ratings in India. The major objectives of the study are (i) to know the perceptions of the individual investors about credit rating instruments offered by Indian credit rating agencies, (ii) to know the perception of investors towards the performance of Indian credit rating agencies. The data required for this study was collected through both primary (questionnaire) and secondary source. By using convenience sampling method, 500 persons were considered as the respondents for the present study. The perceptions of individual investors have been analysed using SPSS to draw meaningful conclusions. The respondents were of the opinion that the impact of rating instruments highly influences the investor’s investment decision. Howerever, then respondents were of the opinion that, credit ratings plays a pivotal role in safeguarding the investors from heavy risk with better return. To conclude, further study may be conducted with regarding guidelines issued by SEBI and methodology followd by rating intitutions, it would help the investors to understand the pattern of investment and how to overcome the risk with better porfolio of investment.