Financial Market & Credit Rating Agencies - Banking awareness questions on current affairs

1)   The Majority shareholder in CRISIL is _________?
- Published on 17 Feb 17

a. Standard and Poors’
b. Fitch Ratings Inc.
c. Moody’s
d. Dun and Bradstreet
Answer  Explanation 

ANSWER: Standard and Poors’

Explanation:
CRISIL’s majority shareholder is Standard & Poor's, a division of McGraw Hill Financial and provider of financial market intelligence.

CRISIL (formerly Credit Rating Information Services of India Limited) is a global analytical company providing ratings, research, and risk and policy advisory services.

CRISIL

Founded : 1987
Headquarters : Mumbai, India
Current Head : Mr. Douglas Peterson (President), Ms. Ashu Suyash (MD & CEO)


2)   The headquarter of ONICRA is _________.
- Published on 17 Feb 17

a. Mumbai
b. Gurugram
c. Hyderabad
d. Noida
Answer  Explanation 

ANSWER: Gurugram

Explanation:
Onicra-leading Credit and Performance Rating agencies in India providing ratings, risk assessment and analytical solutions.

Credit rating agency ONICRA was established in 1993.

It is now Onicra Credit Rating Agency Of India Ltd.

This is a private sector agency set up by Onida Finance.

It has a niche market and provides assessment, grading and rating models for individuals & MSMES (micro, small and medium enterprises).

ONICRA

Founded : 1993
Headquarter : Gurugram, Haryana


3)   What is the full form of CERSAI?
- Published on 17 Feb 17

a. Combined Registry of Securitization Asset Reconstruction and Security Interest
b. Combined Registry of Securitization Agency Reconstruction and Security Interest
c. Central Registry of Securitization Asset Reconstruction and Security Interest
d. Central Registry of Securitization Agency Reconstruction and Security Interest
Answer  Explanation 

ANSWER: Central Registry of Securitization Asset Reconstruction and Security Interest

Explanation:
Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is a central online security interest registry of India.

It was primarily created to check frauds in lending against equitable mortgages, in which people would take multiple loans on the same asset from different banks.

The company incorporated with majority shareholding of the Central Government, Public Sector Banks and National Housing Bank for the purpose of operating a Registration System under the provisions of Chapter IV of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (SARFAESI Act).

CERSAI - Central Registry of Securitization Asset Reconstruction and Security Interest

Founded : 11 March, 2011
Headquarter : New Delhi, India
Current Head : Praveen Kumar Sharma (Central Registrar) (CR, MD & CEO)


4)   The headquarters of CARE is in _______?
- Published on 17 Feb 17

a. Mumbai
b. New Delhi
c. Noida
d. Gurugram
Answer  Explanation 

ANSWER: Mumbai

Explanation:
Credit Analysis & Research Limited (CARE) is located in Mumbai.

CARE Ratings commenced operations in April 1993 and over nearly two decades; it has established itself as the second-largest credit rating agency in India.

To enhance its scope of business CARE Ratings has been nurturing global opportunities and it has launched a new international credit rating agency ‘ARC Ratings’ with 4 partners from Brazil, Portugal, Malaysia and South Africa and established a subsidiary CARE Ratings (Africa) Private Limited (CRAF) in Mauritius.

CARE

Founded: 1993
Headquarter : Mumbai, India
Current Head : Mr. Rajesh Mokashi (MD & CEO)


5)   The headquarters of Investment Information & Credit Rating Agency (ICRA) Limited is located in?
- Published on 17 Feb 17

a. Mumbai
b. Gurugram
c. Noida
d. New Delhi
Answer  Explanation 

ANSWER: Gurugram

Explanation:
ICRA Limited (ICRA) is an Indian independent and professional investment information and credit rating agency.

It was established in 1991, and was originally named Investment Information and Credit Rating Agency of India Limited (IICRA India).

It was a joint-venture between Moody's and various Indian commercial banks and financial services companies.

The company changed its name to ICRA Limited, and went public on 13 April 2007, with a listing on the Bombay Stock Exchange and the National Stock Exchange.

ICRA is second largest Indian rating company in term of customer base.

ICRA

Founded : 1991
Headquarters : Gurugram, Haryana
Current Head : Naresh Takkar (CEO)


6)   SMERA has been registered under which act?
- Published on 16 Feb 17

a. Securities and Exchange Board of India Act, 1992
b. Reserve Bank of India Act, 1934
c. Banking Regulation Act, 1949
d. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
Answer  Explanation 

ANSWER: Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

Explanation:
SMERA has been registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999.

Its registration with SEBI, as a Credit Rating Agency and accreditation by RBI, in September 2012 as an external credit assessment institution (ECAI) to rate bank loan ratings under Basel II guidelines has paved way for SMERA to rate/grade various instruments such as -

  • IPO
  • NCDs
  • Commercial Papers
  • Bonds
  • Security Receipts
  • Fixed Deposits etc.


7)   SMERA is a joint initiative between ______?
- Published on 16 Feb 17

a. SIDBI & Leading Public Sector Banks
b. Dun & Bradstreet Information Services India Private Limited (D&B) & Leading Private Banks
c. RBI & SEBI
d. Both (A) and (B)
Answer  Explanation 

ANSWER: Both (A) and (B)

Explanation:
SMERA Ratings Limited (formerly SME Rating Agency of India Ltd.) is a joint initiative of Small Industries Development Bank of India (SIDBI), Dun & Bradstreet Information Services India Private Limited (D&B) and leading public and private sector banks in India.


8)   Which is a full service credit rating agency exclusively set up for micro, small and medium enterprises?
- Published on 16 Feb 17

a. SMERA
b. ICRA
c. ONICRA
d. CRISIL
Answer  Explanation 

ANSWER: SMERA

Explanation:
SMERA Ratings Limited (formerly SME Rating Agency of India Ltd.) is a full service credit rating agency exclusively set up for micro, small and medium enterprises.

It provides ratings which enable MSME, SMEs, and Corporate to raise bank loans at competitive rates of interest.

SMERA

Founded : 2005
Headquarter : Mumbai, India
Current Head : Mr. Sankar Chakraborty (CEO)


9)   A Credit Bureau is governed by which of the following act?
- Published on 16 Feb 17

a. Securities and Exchange Board of India Act, 1992
b. Reserve Bank of India Act, 1934
c. Credit Information Companies (Regulation) Act of 2005
d. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999
Answer  Explanation 

ANSWER: Credit Information Companies (Regulation) Act of 2005

Explanation:
A Credit Bureau is governed by the Credit Information Companies (Regulation) Act of 2005.

A credit bureau is a collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States,

  • a credit reference agency in the United Kingdom;
  • a credit reporting body in Australia;
  • a credit information company (CIC) in India;
  • a credit registry in the Philippines.
It is not the same as a credit rating agency; it collects and gathers information from different sources.


10)   Which of the following is India’s first Credit Information Company?
- Published on 15 Feb 17

a. CRISIL
b. CIBIL
c. SMERA
d. CERSAI
Answer  Explanation 

ANSWER: CIBIL

Explanation:
Credit Information Bureau Limited (CIBIL) is the first Credit Information Company in India.

TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited) is India’s first Credit Information Company (CIC) founded in August 2000.

It collect and maintain records of individuals’ and non-individuals’ (commercial entities) payments pertaining to loans and credit cards.

These records are submitted to credit bureau by banks and other lenders on a monthly basis; using this information a Credit Information Report (CIR) and Credit Score is developed, enabling lenders to evaluate and approve loan applications.

CIBIL was promoted by State Bank of India (SBI), Housing Development Finance Corporation (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc. (TransUnion).

CIBIL

Founded : August 2000; 16 years ago
Headquarter : Mumbai, India
Current Head : M.V. Nair (Chairman), Satish Pillai (Managing Director)


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