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Question 63

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?

AOptions

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2 and 3

BSolution

Let's analyze the statements regarding credit rating agencies in India:

1. In India, credit rating agencies are regulated by Reserve Bank of India: This statement is incorrect. Credit rating agencies in India are primarily regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Credit Rating Agencies) Regulations, 1999. The Reserve Bank of India (RBI) is the central banking institution and regulator of banks and financial institutions, but not the direct regulator of credit rating agencies.
2. The rating agency popularly known as ICRA is a public limited company: This statement is correct. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) is indeed a public limited company, listed on Indian stock exchanges.
3. Brickwork Ratings is an Indian credit rating agency: This statement is correct. Brickwork Ratings is one of the credit rating agencies registered with SEBI in India, along with others like CRISIL, ICRA, CARE, India Ratings, and Acuite Ratings.

Therefore, statements 2 and 3 are correct.

CStrategy

For questions on regulatory bodies and financial institutions, remember the primary regulator for each sector. For example, SEBI for capital markets and credit rating agencies, RBI for banking and monetary policy, IRDAI for insurance. Keep track of the major players in each sector and their operational status.

DSyllabus Analysis

This question pertains to Indian Economy, specifically 'Financial Markets' and 'Regulatory Bodies'.

EQuestion Analysis

Medium. Requires specific knowledge of financial sector regulations and entities.