Rating agency shares in demand; soar up to 6%

Shares of rating agencies surged up to 6 per cent today following the Reserve Bank's measures announced to deepen the corporate bonds market.
ICRA gained 5.83 per cent to end at Rs 3,802.20 and Credit Analysis and Research Ltd jumped 5.29 per cent to settle at Rs 1,253.85 on BSE.
Shares of CRISIL went up by 2.28 per cent to close at Rs 2,141.05.
"The parting gift from Rajan came, in the form of creation of vibrant and deeper bond markets. These will give an impetus to companies to borrow funds from the bond market albeit at a lower rates compared to banks, this reform has created an alternate route to raise debt for the companies vis-a-vis banks earlier," said Jimeet Modi, CEO, SAMCO Securities.

Outgoing Governor Raghuram Rajan relaxed the guidelines for corporate bond market and allowed banks to issue masala bonds.
Market participants and analysts have hailed the Reserve Bank's measures announced yesterday to deepen the corporate bonds market, saying the move will go a long way in developing the nascent debt space.
Jiju Vidyadharan, Director for funds and fixed income services at Crisil, said the gates of corporate bond market have been opened to global investors by giving them direct access to stock exchanges and the OTC segment as the move will reduce their transaction costs and provide liquidity through a larger number of counter-parties.