IL&FS impact: Govt considers rating reforms to separate review, approval

With the role of rating agencies in the Infrastructure Leasing & Financial Services (IL&FS) scam under the scanner, the government is considering a slew of reforms to separate their review and rating approval functions to ensure there is no conflict of interest.

A senior government official told Business Standard, “IL&FS is perhaps the turning point. There will be a lot of regulatory changes by the learnings of this case.”

Rating agencies that had rated the debt instruments of IL&FS, which went bust, are facing government heat.

“We need to recognise the rating agency. There has to be something about its