MCQ Test: Credit Rating Agencies - 1 - Bank Exams MCQ

• T.S. Vijayan is the present chairman of the IRDA.
• The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India.
• It was constituted by the IRDA Act, 1999, an act of Parliament passed by the Govt. of India.
• The agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.

Organizational Structure

• It is a ten-member body consisting of a chairman, five full-time and four part-time members appointed by the Govt. of India.
• In September 2016, the authority was chaired by T. S. Vijayan and its full-time members were P. J. Joseph, Nilesh Sathe, V. R. Iyer, Pournima Gupte and D. D. Singh.

IRDA - Insurance Regulatory and Development Authority

• Founded: 1999
• Headquarters: Hyderabad, Telangana
• Current Head: T. S. Vijayan

The National Insurance Academy (NIA) is situated in Pune, India.
Founded in 1980 by the Finance Department of the Indian government with capital from LIC and public sector general insurance industry.
NIA started MBA education as a lateral diversification from 2004 with Dr K C Mishra as the founder director and Dr R K Parchure as MBA Co-ordinator.
NIA runs a PGDM course. It provides a dual specialization (Insurance + Finance/Marketing/HR/IT).
A main source of income of the academy is arranged by IRDA in the form of Broker's training and examination programs.
NIA - National Insurance Academy
Founded: 1980
Current Head: Mr. Sushobhan Sarker (Director)

The General Insurance Corporation of India (GIC) was incorporated on 22 November 1972 (under the Companies Act, 1956) as a private company limited.
General insurance business was nationalized by the (GOI) through the General Insurance Business (Nationalization) Act (GIBNA) of 1972.
After the process of mergers, GIC was re-organized with four fully owned subsidiary companies:

• National Insurance Company Limited,
• New India Assurance Company Limited,
• Oriental Insurance Company Limited,
• United India Insurance Company.

GIC - General Insurance Corporation of India
Established: 22 November, 1972
Headquarters: Mumbai, India
Current Head: Alice Vaidyan (Chairman & Managing Director)
Similarly,
T.S. Vijayan – Chairman (IRDA)
Anuj Agrawal – MD & CEO (Bajaj Allianz General Insurance)
Neelesh Garg – MD & CEO (Tata AIG General Insurance)

On 28 September 2015, the Forward Markets Commission (FMC) was merged with the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for regulating the securities market.
It became an autonomous body by The Government of India on 12 April 1992 and given statutory powers in 1992 with SEBI Act 1992.
The SEBI is managed by its members, which consists of following:

• The chairman who is nominated by Union Government of India.
• Two members, i.e., Officers from Union Finance Ministry.
• One member from the Reserve Bank of India.
• The remaining five members are nominated by Union Government of India, out of them at least three shall be whole-time members.

SEBI - Securities and Exchange Board of India
Founded: 12 April 1992
Headquarters: Mumbai, India
Current Head: U. K. Sinha (Chairman)

National Stock Exchange (NSE) was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system.
NSE was established in 1992 as the first demutualized electronic exchange in the country.
NSE was also instrumental in creating the National Securities Depository Limited (NSDL) which allows investors to securely hold and transfer their shares and bonds electronically.
NSE offers trading in the following segments:
Equities -

• Indices
• Mutual Funds
• Exchange Traded Funds
• Initial Public Offerings
• Security Lending and Borrowing Scheme

Derivatives -

• Equity Derivatives (including Global Indices like CNX 500, Dow Jones and FTSE )
• Currency Derivatives
• Interest Rate Futures

Debt -

• Corporate Bonds

NSE
Founded: 1992
Headquarter: Mumbai, India
Current Head: Ashok Chawla (Chairman)

• Bombay Stock Exchange (BSE) is Asia’s first stock exchange.
• It claims to be the world’s fastest stock exchange, with a median trade speed of 6 microseconds.
• The Bombay Stock Exchange (BSE) is located at Dalal Street, Mumbai (formerly Bombay).
• It was established in 1875.
• BSE is the world's 11th largest stock exchange and more than 5500 companies are publicly listed on the BSE.

BSE
Founded: 9 July 1875
Headquarter: Mumbai, India
Current Head: Ashish Kumar Chauhan (MD & CEO)

• Stock Holding Corporation of India Ltd (SHCIL) was established in 1986 under the Government of India as public limited company.
• Stock Holding Corporation of India Ltd (SHCIL), India’s largest custodian and depository participant.
• It is owned by the India's leading Banks and Financial Institutions such as SU-UTI, IFCI Ltd., LIC, GIC, NIA, NIC, UIC, and TOICL.
• SHCIL is known for its online trading portal with investors and traders.
• It is also responsible for e-stamping system around India.
• Stock Holding Corporation of India (SHCIL), the country's first and one of the largest security custodians to financial institutions.

SHCIL
Founded: 1986
Headquarter: Mumbai, India
Current Head: Ramesh NGS ( Current MD)

• 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)

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.

• 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)