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. [2022]

Consider the following statements:

In India, credit rating agencies (CRAs) are not regulated by the Reserve Bank of India (RBI); rather, they are regulated by the Securities and Exchange Board of India (SEBI).

ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency. It is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange.

In India, a public limited company is a type of corporation whose shares are available for purchase by the general public through stock exchanges like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). This type of company must have at least seven shareholders and has no upper limit on the number of shareholders. It is regulated by the Securities and Exchange Board of India (SEBI), which mandates regular financial disclosures and compliance with corporate governance standards to ensure transparency. Shareholders in a public limited company have limited liability, meaning their financial responsibility is confined to the amount they have invested in the company’s shares. The company is managed by a board of directors elected by the shareholders, and its shares can be traded freely on the stock market, providing liquidity and access to capital for the company.

Brickwork Ratings (BWR), is a SEBI-registered Indian Credit Rating Agency founded by bankers, credit rating professionals, former regulators as well as professors, and is committed to promoting Financial Literacy.