Such ratings are instrument-specific and are not for the company as a whole. Mutual funds and non-banking financial companies are increasingly playing a dominant role in the capital market. Reservation of allotment to mutual funds, bought out deals, etc. have considerably reduced the burden of securing subscription for public issues. A variety of other instruments are available for short term and specific requirements. Working capital requirements can be met by availing of an advance from commercial banks.
Banks normally insist on a security for such advances.
If the quantum of funding is high, commercial banks form a consortium to sanction a loan. The RBI has deregulated interest rates, and these are now determined by the lending bank on a case by case basis. While export restrictions were exceptional, with the economy opening up, import restrictions have been significantly reduced. Except for a few items in the prohibited list for which an import licence is needed, import of goods is freely allowed. The present policy restricts import of computers of CIF value less than Rs. 150,000 and keyboards and monitors of CIF value less than Rs. 7500 each.