🧷 Authentic Classroom Explanation by IAS Monk

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📌 The Question:

Consider the following statements:

1. In India, credit rating agencies are regulated by the 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) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

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✅ Correct Answer: (b) 2 and 3 only

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🧠 Classroom Explanation

• Statement 1 is not correct
  • In India, Credit Rating Agencies (CRAs) are regulated by SEBI, not the RBI.
  • They are governed under the SEBI (Credit Rating Agencies) Regulations, 1999, which lay down:
    • Registration norms
    • Rating process standards
    • Conflict-of-interest safeguards
    • SEBI inspection powers
• Statement 2 is correct
  • ICRA Limited (Investment Information and Credit Rating Agency of India Limited) was established in 1991.
  • It is a Public Limited Company, listed on BSE and NSE.
  • ICRA is part of the ICRA Group, a well-known credit assessment institution in India.
• Statement 3 is correct
  • Brickwork Ratings (BWR) is a SEBI-registered Indian Credit Rating Agency.
  • It was promoted by bankers, former regulators, and credit professionals.
  • Canara Bank is its promoter and strategic partner.

👉 Hence, only Statements 2 and 3 are correct.

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🔍 Curiosity Raiser

Why does SEBI regulate credit ratings
while RBI regulates banks —
and why mixing them up is a classic Prelims trap?

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🧘 IAS Monk Whisper

In finance, regulation defines authority —
confuse the regulator, and clarity collapses.