Consider the following statements:1. In India, credit rating agencies are regulated by the 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?
✓ Correct answer: b) 2 and 3 only
ExplanationCredit Rating is assessment of the creditworthiness of a borrower.Individuals are given ‘credit scores’, while corpo- rations and governments receive ‘credit ratings’.Statement 1 is incorrect: Credit rating agencies in India are regulated by the Securities and Exchange Board of In- dia (SEBI) under SEBI (Credit Rating Agencies) Regulations, 1999, not the Reserve Bank of India (RBI).Statement 2 is correct: ICRA (Investment Information and Credit Rating Agency of India Ltd.) was set up in 1991 by IFCI, LIC, SBI and select banks as well as financial institu- tions to rate debt instruments.The ICRA consists of a group of Companies including its subsidiaries.ICRA Limited is a public limited company listed on stock exchanges.Statement 3 is correct: In India credit rating agencies regis- tered under Securities and Exchange Board of India (SEBI) are CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings.Globally, Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) control approximately 95% of ratings business.SUPER HINT For S2, have you ever read/heard any prov
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