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Is credit rating mandatory for the issue of debentures?

Yes, credit rating is mandatory for the public issue of debentures.

A company is required to obtain the credit rating for the NCD it intends to issue. Without a credit rating, a company cannot issue NCDs. The companies are required to put the credit rating in the offer documents that indicate the degree of safety and risk the NCD carries.

Is credit rating mandatory for the issue of debentures?