| In India, over the years, credit rating agencies (CRAs) have played a predominant role by giving rating to investment bonds and shares, considering the default risk of the respective financial instruments, thus helping investors and companies. But the credibility of these agencies has been eroded among retail investors due to various incidents like satyam fiasco, subprime crisis, recently IL&FS and many more such incidents. In this present\ scenario, the present study was conducted to find out the investors’ perception about credit rating and measures taken by SEBI to build confidence among investors. For the present study, retail investors of Hyderabad were considered and primary data were gathered through a questionnaire, related to investor perception of CRAs. The study results, as expected, had shown that the perception of investors, relating to the functioning of CRAs, was not positive and the trust it had built over the years, had decreased, with the outbreak of IL&FS crisis. |