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?
A
1 and 2 only
B
2 and 3 only
Correct Answer
C
1 and 3 only
D
1, 2 and 3
Explanation
Option (b) is correct because ICRA is a listed public limited company and Brickwork Ratings is a prominent SEBI-registered Indian credit rating agency. Statement 1 is incorrect because Credit Rating Agencies (CRAs) in India are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Credit Rating Agencies) Regulations, 1999, rather than the RBI. The core concept tested is the regulatory jurisdiction over financial market intermediaries and the identification of domestic rating institutions.
Financial MarketsCredit Rating, Regulatory BodiesCredit rating agenciesReserve Bank of India (RBI)ICRApublic limited companyBrickwork RatingsSEBI