Which of the following statements is/are not true regarding Credit Rating Agencies (CRA) in India?
I. The Securities and Exchange Board of India (CRA) Regulations, 1999 empower SEBI to regulate CRAs operating in India.
II. All the credit agencies need to be registered with SEBI in order to operate in India.
III. There are several Indian Credit Rating Agencies, viz. CRISIL, ICRA, CARE, India Ratings and Research, SMERA, Infomerics and Brickworks, Moody, Fitch.
IV. CRAs help strengthening of primary market by increasing borrower pool.
I, II, III, IV
Explanation: Credit Rating Agencies (CRA) assess the creditworthiness of organization and different entities. It gives a rating to debtors or borrowers on the basis of their ability to pay back their principal loan and interest on time. There are a total of six credit agencies in India viz, CRISIL, CARE, ICRA, SMREA, Brickwork Rating, and India Rating and Research Pvt. Ltd. Moody and Fitch are American business and financial services companies.