APPENDIX - A QUESTIONNAIRE

Transcription

1 xiv APPENDIX - A QUESTIONNAIRE I. Personal Information 1.1 Name : 1.2 Amount of Investment : Up to Rs. 1,00,000 [ ] Rs.1,00,001-Rs.2,00,000[] Rs.2,00,001-Rs.5,00,000 [ ] Above Rs.5,00,000[ 1.3 Educational Qualification : 10 th [ ] +2 [ ] UG [ ] PG [ ] 1.4 Age : [ ] [ ] [ ] 51& above[ ] 1.5 Gender : Male [ ] Female [ ] 1.6 Occupation : Private sector [ ] Professional [ ] Government Service [ ] Business [ ] 1.7 Income : Below Rs.1,00,000 [ ] Rs.1,00,001-Rs.2,00,000 [ ] Above Rs.2,00,000 [ ] 1.8 Savings : Up to 10% [ ] 11%-20% [ ] 21%-30% [ ] 31% & above [ ] 1.9 Place of residence : Rural [ ] Semi-urban [ ] Urban [ ] City [ ] 1.10 Marital Status : Married [ ] Unmarried [ ] 1.11 Number of dependents : 1-2 [ ] 3-4 [ ] 5-6 [ ] 7 & above [ ] 1.12 Spouse : 1-2 [ ] 3-4 [ ] 5-6 [ ] 7 & above [ ] II. Investment Information 2.1. Invested in the instruments of 1. Corporate sector [ ] 2. Banking sector [ ] 3. Others [ ]

2 xv 2.2. Period of investment 1. Less than 1 year [ ] years [ ] 3. More than 3 years [ ] 2.3. Investment information gathered from 1. Published information [ ] 2. Television and Internet [ ] 3. Brokers [ ] 4. Friends/Relatives [ ] 5. Others [ ] 2.4. Percentage of investment in 1. Shares % 2. Debentures % 3. Commercial paper % 4. Post office % 5. Fixed deposit % 6. Others % 2.5. Purpose of investment 1. For tax exemption [ ] 2. Security [ ] 3. Capital appreciation [ ] 4. Returns [ ] 2.6. Expected return on investment 1. 10% [ ] 2. 20% [ ] 3. 30% & above [ ] 2.7. Which factor do you consider before investment? 1. High risk and High return [ ] 2. Moderate risk and Moderate return [ ] 3. Low risk and Low return [ ]

3 xvi III. Awareness of investors about credit rating 3.1 Investment decision taken on the basis of credit rating 3.2 Will you search Credit rating information by yourself? 3.3 Your knowledge about Credit rating 1. Simply a grading system [ ] 2. It shows the exact financial position of the company [ ] 3. An indicator of credit risk [ ] 4. Just a marketing strategy of the issuing company [ ] 5. No idea [ ] 3.4 Do you consider the following additional information apart from credit rating for investment decisions? 1. Reputation of the issuing company [ ] 2. Company s past five years performance [ ] 3. Company s investment policy [ ] 4. No consideration [ ] 3.5 Do you think that the number of Credit Rating Agencies established in India is enough?

4 xvii 3.6 Are you satisfied with the ratings given by the agencies? 1. Highly satisfied [ ] 2. Satisfied [ ] 3. Dissatisfied [ ] 4. Highly Dissatisfied [ ] 3.7 Risk Preference 1. Risk free investment [ ] 2. Moderate risk investment [ ] 3. Low risk investment [ ] 4. High risk investment [ ] 3.8 Reason for considering the rating given by the Credit Rating Agencies. 1. Credibility of the issuers [ ] 2. Prompt payment of Interest and principal [ ] 3. Reputation of the issuer [ ] 4. Update information about the issuer [ ] 3.9 The advantage of getting credit rating to the issuers 1. Getting adequate quantum of bank loan [ ] 2. Concession in interest rate [ ] 3. Relaxation in providing collaterals [ ] 4. Reduction in transaction cost [ ] 5. Faster decision on the part of the investor [ ] 3.10 Preference of Credit Rating Agency 1. CRISIL [ ] 2. ICRA [ ] 3. CARE [ ] 4. FITCH [ ]

5 xviii 3.11 The purpose of credit rating 1. To measure credit risk [ ] 2. Assisting investments [ ] 3. Improving quality of instruments [ ] 4. Getting advice on enterprise development and identification of risk [ ] 5. Assurance about safety [ ] 3.12 Choice of investment 1. Bank term deposits [ ] 2. Bonds [ ] 3. Fixed deposits [ ] 4. Debentures [ ] 5. Government security [ ] 6. Commercial papers [ ] 3.13 What are the sources of your knowledge about credit rating agency? 1. News paper [ ] 2. Market source [ ] 3. Prospectus [ ] 4. Magazines [ ] 5. Credit rating agency guides [ ] 6. TA advertisements [ ] 7. Friends and fellow companions [ ] 3.14 Do you think that the ratings given by the agencies help the investors? 3.15 Are you comfortable with the ratings?

6 xix IV. Credit Rating Attributes and Satisfaction level Rating attributes Very Highly satisfied Highly satisfied Quality of analysis Rating accuracy Timeliness of rating Rating upgrading Transparency of methodology Surveillance Usefulness of research Coverage of new issues Experience of the rating agency Proper fore casting of financial data Practical utility Update information on credit market V. Credit Rating and its Down Grade Somewhat satisfied dissatisfied Strongly dissatisfied 5.1 Acceptable level of down grade in rating 1. Below 10 per cent per cent per cent per cent per cent 6. Above 50 per cent

7 xx 5.2 Reasons for credit rating down grade 1. Economic sluggishness 2. Poor industrial scenario 3. Corporate Mismanagement 4. Rating agency inefficiency VI. Perception on Credit Rating Note SA Strongly Agree, A Agree, UD Undecided, DA Disagree and SDA Strongly Disagree Purpose of referring credit rating are SA A UD DA SDA It assures timely payment of interest and Principal It assures safety of investment It shows financial position of the Company 6.2. Expectations about the Credit Rating SA A UD DA SDA Agencies Accurate rating Social responsibility Implementation of SEBI s Requirements 6.3. Reporting about the Credit Rating SA A UD DA SDA Agencies Responsible Careless Corruptive Informative Transparent Timely 6.4. Credit Rating Agencies can be SA A UD DA SDA regulated through Review Board In-built responsibility Investor Agency Association

8 xxi 6.5. Credit Rating and drawbacks SA A UD DA SDA Guidance, not recommendation Based on assumptions Issuer may choose the Rating Agency which gives favourable rating 6.6. Rating is reviewed with reference to SA A UD DA SDA New political environment Economic trends Financial development Industry trend 6.6a. Rating and its change effects SA A UD DA SDA Upgrading leads to investment Downgrading leads to disinvestment Reconfirmation leads to stable investment 6.7. Give opinion about the following SA A UD DA SDA Rating should be done by two agencies Rated instrument in higher grade gives low rate of interest Rating must be made compulsory for all instruments It is the duty of the Rating Agencies to educate investors about credit rating Uniform symbols by all Credit Rating Agencies ****************

9 xxii APPENDIX B LIST OF PUBLICATIONS S.No Title Journal ISSN/ISBN No Year 1 A Study on Perception of Investors on Credit Rating Attributes Commerce Times International Research Journal of Commerce ISSN: January Credit Rating Issues and Perspectives with respect to Investors in Tamilnadu IJRBI ISSN: December 2013