Consider the following statements :
- 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.
Which of the statements given above are correct ?
Show answer
Answer: B. Statement 1 is wrong: credit rating agencies in India are regulated by SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999. Statement 2 is correct: ICRA Limited is a public limited company listed on stock exchanges. Statement 3 is correct: Brickwork Ratings is an Indian credit rating agency, registered with SEBI at the time of the exam. So 2 and 3.
Watch for: RBI accredits rating agencies for bank capital purposes, which makes students think it is their regulator.
Why the other options are wrong
- A. Wrong because SEBI, not RBI, regulates rating agencies.
- C. Wrong because RBI does not regulate credit rating agencies.
- D. Wrong because statement 1 is incorrect.
Source to check: SEBI (Credit Rating Agencies) Regulations, 1999; SEBI website list of registered CRAs; ICRA Annual Report
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.