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    Question

    Which authority is responsible for regulating Credit

    Rating Agencies (CRAs) in India?
    A Securities and Exchange Board of India (SEBI) Correct Answer Incorrect Answer
    B Reserve Bank of India (RBI) Correct Answer Incorrect Answer
    C Registrar of Credit Rating Agencies Correct Answer Incorrect Answer
    D Ministry of Finance Correct Answer Incorrect Answer
    E Federation of Indian Chambers of Commerce and Industry (FICCI) Correct Answer Incorrect Answer

    Solution

    In India, Credit Rating Agencies (CRAs) are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Credit Rating Agencies) Regulations, 1999. • CRAs provide independent opinions on the creditworthiness of entities and instruments, which is crucial for investor protection and transparency in financial markets. • While the RBI may use ratings for regulatory purposes (e.g., bank exposures), the authority to license, monitor, and regulate CRAs rests solely with SEBI. • Neither the Ministry of Finance, Registrar of CRA, nor industry bodies like FICCI regulate CRAs. Thus, the correct regulator is SEBI.

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