Consider the following statements:In India, credit rating agencies are regulated by Reserve Bank of

Question

Consider the following statements:In India, credit rating agencies are regulated by Reserve Bank of India.The rating agency popularly known as ICRA is a public limited company.Brickwork Ratings is an Indian credit rating agency.Which of the statements given above are correct?

Accepted Answer

Credit rating agencies in India are regulated by SEBI. The SEBI (Credit Rating Agencies) Regulations, 1999 govern the credit rating agencies and provide for eligibility criteria for registration of credit rating agencies, monitoring and review of ratings, requirements for a proper rating process, avoidance of conflict of interest and inspection of rating agencies by SEBI, amongst other things. Hence, statement 1 is incorrect.ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency. Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. Hence, statement 2 is correct.Brickwork Ratings (BWR), is a SEBI registered Indian Credit Rating Agency founded by bankers, credit rating professionals, former regulators as well as professors, is committed to promoting Financial Literacy. Brickwork Ratings has Canara Bank, a leading Public Sector Bank, as its promoter and strategic partner. Hence, statement 3 is correct.