Regulation and examples of credit rating agencies in India
Question
Consider the following statements: Which of the statements given above are correct?
- 1.
In India, credit rating agencies are regulated by Reserve Bank of India.
- 2.
The rating agency popularly known as ICRA is a public limited company.
- 3.
Brickwork Ratings is an Indian credit rating agency.
Options
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Explanation
Statement 1 is incorrect; Credit Rating Agencies in India (like CRISIL, ICRA, CARE) are regulated by the Securities and Exchange Board of India (SEBI), not the RBI. Statements 2 and 3 are correct; ICRA (originally Investment Information and Credit Rating Agency) is a public limited company (majority-owned by Moody's), and Brickwork Ratings is a SEBI-registered domestic Indian credit rating agency.
Answer: (b).
Question details
Year
2022
Paper
GS Paper 1
Question
Q63
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
SEBI Credit Rating Agencies Regulations 1999
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