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

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Q: 63 (IAS/2022)
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 ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,138,79,30,138,29,20

keywords: 

{'indian credit rating agency': [0, 0, 0, 1], 'credit rating agencies': [0, 0, 0, 1], 'rating agency': [0, 0, 0, 1], 'brickwork ratings': [0, 0, 0, 1], 'icra': [0, 0, 0, 2], 'reserve bank': [1, 0, 3, 4], 'public limited company': [0, 0, 1, 2], 'india': [8, 1, 7, 13]}

Statement 1 is incorrect because credit rating agencies in India are regulated by the Securities and Exchange Board of India (SEBI) and not the Reserve Bank of India.

Statement 2 is correct. ICRA (formerly known as Investment Information and Credit Rating Agency of India Limited) is a public limited company and one of the leading credit rating agencies in India. It was established in 1991 and is headquartered in Gurugram, Haryana.

Statement 3 is correct. Brickwork Ratings is an Indian credit rating agency that was established in 2007. It is headquartered in Bengaluru, Karnataka, and provides credit ratings and research services across various sectors, including banking, financial services, and insurance.

 

Preparing for Future Exams: Learning from the Analysis of Past Questions

Topics:

  • Credit rating agencies in India
  • Regulation of credit rating agencies in India
  • Types of credit ratings
  • Role of credit rating agencies in financial markets

Sources:

  • Securities and Exchange Board of India (SEBI)
  • Reserve Bank of India (RBI)
  • Credit Rating Information Services of India Limited (CRISIL)
  • ICRA Limited
  • Brickwork Ratings

NCERT and reference book chapters:

  • Chapter 7 "Money and Credit" in Class 10 NCERT Economics textbook
  • Chapter 3 "Financial System" in Class 12 NCERT Economics textbook
  • Chapter 14 "Money and Banking" in "Indian Economy" by Ramesh Singh

Related concepts:

  • Credit risk
  • Default risk
  • Creditworthiness
  • Sovereign credit rating
  • Corporate credit rating