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 Rating is an Indian credit rating agency. Which of the statements given above are correct?
Explanation
Statement 1 is incorrect: 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, and not by the Reserve Bank of India. Major credit rating agencies registered with SEBI include CRISIL, CARE, ICRA, SMERA, Brickwork Ratings, and India Ratings and Research.
Statement 2 is correct: ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was established in 1991 and is a public limited company listed on the Bombay Stock Exchange and the National Stock Exchange.
Statement 3 is correct: Brickwork Ratings (BWR) is a SEBI-registered Indian credit rating agency. It is also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI) for bank loan ratings. It was established in 2007 and is promoted by Canara Bank.