Markets regulator.....stated that cross-holding in credit rating agencies (CRAs) will be capped at 10 percent and also decided to raise the minimum networth requirement to Rs 25 crore from the current Rs 5 crore.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Markets regulator____stated that cross-holding in credit rating agencies (CRAs) will be capped at 10 percent and also decided to raise the minimum networth requirement to Rs 25 crore from the current Rs 5 crore.

A	SEBI
B	IRDAI
C	RBI
D	NABARD

Explanation:

Detailed explanation-1: -In the Indian context, debt instruments rated ‘BBB-’ and above are classified as investment grade ratings. Instruments that are rated ‘BB+’ and below are classified as speculative grade category ratings in which case the ability to meet the payment obligations is considered to be “speculative”.

Detailed explanation-2: -Credit rating agencies take into consideration several factors like the financial statements, level and type of debt, lending and borrowing history, ability to repay the debt, and the past debts of the entity before rating their credit.

Detailed explanation-3: -Detailed Solution. The correct answer is Securities and Exchange Board of India (SEBI). All the credit rating agencies in India are regulated by SEBI (Credit Rating Agencies) Regulations, 1999 of the Securities and Exchange Board of India Act, 1992.

Detailed explanation-4: -Who regulates rating agencies? Credit rating agencies are regulated by SEBI.

There is 1 question to complete.