[Solved] Consider the following Statements: In India, Credit rating Agencies are regulated Reserve Bank of India The Rating Agency popularly Known as ICRA is a Public Limited Company. Brick Works Ratings is an Indian Credit rating Agency.

Q63) Consider the following Statements:

1. In India, Credit rating Agencies are regulated Reserve Bank of India
2. The Rating Agency popularly Known as ICRA is a Public Limited Company.
3. Brick Works Ratings is an Indian Credit rating Agency.

Which of the statements given above is/are correct?

1. 1 and 2 Only
2. 2 and 3 Only
3. 1 and 3 Only
4. 1,2 and 3

Answer: 2

• SEBI oversees the regulation of credit rating agencies in India.
• The SEBI (Credit Rating Agencies) Regulations, 1999 governs credit rating agencies and, among other things, specifies the requirements for a proper rating process, the avoidance of conflicts of interest, and the inspection of rating agencies by SEBI.
• It also specifies the eligibility requirements for registration of credit rating agencies.
• Leading financial/investment institutions, commercial banks, and financial services firms founded ICRA Limited (previously known as Investment Information and Credit Rating Agency of India Limited) in 1991 to serve as an independent and expert investment information and credit rating agency.
• Brickwork Ratings is authorised to conduct credit ratings in India by the Reserve Bank of India (RBI) as an external credit assessment agency (ECAI).
• Canara Bank sponsors Brickwork Rating, which was founded in 2007.
• It provides ratings for financial institutions, SMEs, municipal corporations, capital market instruments, and bank loans.