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UPSC Prelims 2022 Paper-1 📅 05 Jun, 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?

A
(a) 1 and 2 only
B
(b) 2 and 3 only
C
(c) 1 and 3 only
D
(d) 1, 2 and 3
Result Summary
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APEDIA

UPSC Prelims
2022 • 05 Jun, 2022 • Paper-1
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?
Correct Answer
(b) 2 and 3 only
Regulatory Authority: Statement 1 is totally incorrect. Credit Rating Agencies (CRAs) operating in India are strictly registered and stringently regulated by th......
Ref/Book : UPSC Prelims 2022
Ref. Subject Economy
Chapter -
Ref. Topic Financial Markets
Pg. No -
💡 Analysis & Explanation
Regulatory Authority ▼
Statement 1 is totally incorrect. Credit Rating Agencies (CRAs) operating in India are strictly registered and stringently regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Credit Rating Agencies) Regulations, 1999, not by the Reserve Bank of India.
Corporate Structure ▼
Statement 2 is correct. ICRA Limited is a highly prominent, independent, and professional investment information and credit rating agency that formally operates as a publicly listed limited company on Indian stock exchanges.
Domestic Agency Profile ▼
Statement 3 is correct. Brickwork Ratings (BWR) was recognized as an indigenous, SEBI-registered Indian credit rating agency, heavily involved in rating bank loans, bonds, and commercial paper.
Conclusion ▼
Statements 2 and 3 are factually accurate descriptions of the Indian credit rating ecosystem.
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