Compensation Policy

Compensation Policy

POLICY ON GENERAL NATURE OF COMPENSATION ARRANGEMENTS FOR RATED ENTITIES

INFOMERICS shall follow a transparent policy on initial rating fees and surveillance fees to be charged to the clients for extending the services for rating their various instruments. We are extending different rating products. Therefore, as per practice and for the sake of convenience we propose the fee structure to be computed as a percentage of debt amount to be rated subject to collection of minimum fees to cover our cost. 

The proposed fee structure for different products is given below: 

THE RACK RATE COMPENSATION POLICY WHICH NEEDS TO BE UPLOADED ON THE WEBSITE AS PER THE DIRECTIVES OF SEBI/RBI.

The general fee structure for ratings is given as under: 

FOR BANK LOANS/FACILITIES 

• Initial Rating fee - 0.10% of the debt/facility amount to be rated subject to a minimum flat fees of Rs. 40,000/- up to debt size of Rs 10 crore)
• Annual Surveillance fee - 0.04% of the debt/facility amount being rated subject to a minimum fees of Rs. 30,000) 

FIXED DEPOSITS

• The initial rating fee shall be 0.06% of the outstanding amount of Fixed Deposits subject to a minimum of Rs.250,000/-
• Annual Surveillance fee - 0.03% of the Fixed deposit limit being rated subject to a minimum fees of Rs. 150,000/- 

DEBENTURES /BONDS/NCDs

• The initial rating fees shall be - 0.1% of the issue amount subject to a minimum of Rs.250,000/-
• Annual Surveillance fee shall be 0.03% of the debt/facility amount being be rated subject to a minimum fees of Rs. 1,50,000).

COMMERCIAL PAPERS

• The initial rating fees shall be 0.06% of the issue amount subject to a minimum of Rs.200,000.
• Annual Surveillance fee - 0.03% of the facility amount being rated subject to a minimum fees of Rs. 100,000/- 

ISSUER RATING

• The initial rating fees shall be minimum of Rs 100,000/-.
• Annual Surveillance fee shall also be minimum of Rs. 75000/-

GENERAL INSTRUCTIONS:

• The above fee is excluding the GST and any other taxes applicable or applied later by the government.
• Out-of-pocket expenses, if any, will be charged to the client on actual basis. 
• The initial rating fees/annual surveillance fees shall be paid upfront in full before the assignment is completed.
• Rating fees are computed separately on each instrument issued.
• INFOMERICS may consider alternative price structure for select clientele on case to case basis based on the industry type, facility proposed for rating and complexity of the rating exercise.
• INFOMERICS shall have a separate compensation policy for rating Government departments, undertakings, corporations and for tender bidding.
• This disclosure is being made as per the directions of Reserve Bank of India vide communication no DBOD/BP/No./5382/21.06.007/2012-13 dated April 26, 2013

*Policy on General Nature of Compensation Arrangements for Rated Entities (Version III) approved in the BM dated 01st February 2022.

Last Updated - 29th September 2023

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