UPSC Prelims 2022 Question:

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:

• A credit rating agency is an entity which assesses the ability and willingness of the issuer company for timely payment of interest and principal on a debt instrument. Credit rating agencies are regulated by the Securities and Exchange Board of India (SEBI). So, statement 1 is not correct.
  
  
• 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. ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. So, statement 2 is correct. 
  
  
• Brickwork Ratings (BWR) is an Indian Credit Rating Agency that offers rating services on Bank Loans, NCD, Commercial Paper, Fixed deposits, Securitised paper, Security receipts etc. Brickwork Ratings founded by bankers, credit rating professionals, former regulators as well as professors, is committed to promoting Financial Literacy. BWR has its corporate office in Bengaluru. So, statement 3 is correct. 
  
  

Therefore, option (2) is the correct answer.

Subject: Economics|Money and Banking