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?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Explanation

Statement 1: Incorrect. Credit rating agencies in India are regulated by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India (RBI).
Statement 2: Correct. ICRA Limited (Investment Information and Credit Rating Agency of India Limited) is a public limited company.
Statement 3: Correct. Brickwork Ratings Private Limited is an Indian credit rating agency.

Only statements 2 and 3 are correct. Therefore, the answer is (b).

Learn more:

Credit rating agencies

Credit rating agencies are organizations that assess the creditworthiness of borrowers, such as governments, corporations, and individuals. They assign credit ratings, which are symbols that indicate the likelihood of a borrower defaulting on its debt obligations.

Credit rating agencies in India

Credit rating agencies in India are regulated by SEBI under the Credit Rating Agencies (Regulation) Act, 1999. There are seven credit rating agencies registered with SEBI:

CRISIL
ICRA
CARE
Brickwork Ratings
Fitch India
India Ratings and Research
Infomerics Valuation and Rating

Credit rating agencies play an important role in the financial markets by helping investors to make informed investment decisions. They also help borrowers to raise capital at competitive interest rates.