Policy on Compensation Arrangements with Issuers &/or Borrowers

Normally compensation is received from the issuers of the securities/ borrower of the facilities for assigning credit ratings. In some cases, compensation may be paid by investors, intermediaries, or third parties for the same. ​

Rating fee structure

The rating/grading fee is determined by various factors, including the type, size and complexity of the debt instrument/other security being rated. Infomerics may consider using an alternative fee structure for volume issuers and such other entities. In respect of debt products that have a complex structure or require substantially greater analytical effort, Infomerics reserves the right to charge a fee higher than the normal structured fees payable by the issuers for products of similar size.The rating/grading fee consists of an initial rating/grading fee, which is charged up front (that is, before the rating/grading is assigned) and an annual surveillance fee, which is charged for monitoring the assigned rating/grading over the life of the rated/graded products/other security or till such time that the rating/grading is withdrawn, whichever is earlier. The annual surveillance fee is payable if the rating/grading is accepted and/or used by the entity concerned. If the grading is one-time exercise, as in the case of Initial Public Offerings (IPOs), no surveillance fees is payable. Rating fee structures are discussed and finalised with the issuer/borrower before taking up the assignment. Fee schedules are available to issuers upon request.Analytical independence

Analytical independence

Infomerics believes in maintaining objectivity, integrity and independence of its ratings.The rating/grading compensation has no impact on the rating/grading assigned, or on theprocesses, analytical or otherwise, associated with the rating/grading exercise. Therating/grading fees in all cases are negotiated by the business development team and they donot participate in the rating/grading process. Infomerics’ analysts involved directly inexecuting rating/grading assignments are neither responsible forbusiness development nordo they engage in any discussions over fees with existing or prospective rating/grading clients. They are also not involved in recovery/receipt of any rating/grading fee or annualsurveillance fee thereof.

Dissemination of rating

Infomerics Ratings shall be disseminating their accepted ratings/gradings and the relatedRating Release free of cost. Such dissemination is normally done through channels including website of Infomerics Ratings (