RAS question
Credit rating agencies in India are regulated by:
Correct answer: (B) SEBI.
Credit rating agencies in India are regulated by SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999.
Explanation
In India, credit rating agencies are regulated by the Securities and Exchange Board of India through the SEBI (Credit Rating Agencies) Regulations, 1999. SEBI's legal page titled "SEBI (Credit Rating Agencies) Regulations, 1999" lists the original 07 July 1999 regulations along with later amendments, making this a SEBI regulatory framework rather than an insurance, banking, or ministry-administered regime. SEBI is therefore the regulator for credit rating agencies. CRISIL, ICRA, CARE, India Ratings, Acuite, Brickwork and Infomerics are treated as credit rating agencies under this regulatory context.
Why the other options are wrong
- (A) IRDAI regulates the insurance sector, while credit rating agencies are regulated under SEBI regulations.
- (C) RBI is the banking regulator, while credit rating agencies are regulated by SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999.
- (D) The Ministry of Finance is not the direct regulator for credit rating agencies; the applicable regulatory instrument is SEBI's Credit Rating Agencies Regulations, 1999.
Concept
This tests financial-market regulation in the Indian Economy syllabus: matching market intermediaries with their statutory regulators. It recurs in RAS because questions often distinguish SEBI, RBI, IRDAI and ministry roles in the financial system.