Economy : Financial Market Instruments

Q 8 / 16

UPSC CSE Prelims 2022

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 ?

EXPLANATION

Correct Option (b)

Statement 2 is correct. ICRA Limited, formerly Investment Information and Credit Rating Agency of India Limited, is a public limited company. It is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Statement 3 is correct. Brickwork Ratings was an Indian credit rating agency. It was recognized by the Securities and Exchange Board of India (SEBI) and provided credit ratings for various financial instruments and entities in India at the time the question was framed.

Incorrect Options

Statement 1 is incorrect. In India, credit rating agencies (CRAs) are regulated by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India (RBI). SEBI is responsible for framing regulations and overseeing the functioning of CRAs under the SEBI (Credit Rating Agencies) Regulations, 1999.

Option (a) is incorrect because Statement 1 is false.

Option (c) is incorrect because Statement 1 is false.

Option (d) is incorrect because Statement 1 is false.

SOURCEIndian Economy by Ramesh Singh, Chapter on Financial Markets