Credit rating agencies (CRAs) exist to primarily evaluate the creditworthiness of corporate borrowers who directly seek funds from the public without going to a bank. This study seeks to review the developments of CRAs in India, taking into consideration the recent global financial crisis. Emphasis is placed on the existing and desired regulatory structure in India vis-à-vis the legislation in the United States (US) and the European Union (EU). In perspective, affixing liability to the CRA is seen as a prudent and a decisive step in checking the potential malfunctioning in the system. Likewise, it would be a welcome move if the Securities and Exchange Board of India (SEBI) leads the way in affixing liability to credit rating agencies for reckless rating.