ICRA’s Subsidiary Approved as Category-I ESG Rating Provider by SEBI

On April 29, 2024, the leading credit rating agency in India, ICRA, announced in a stock exchange filing that the Securities and Exchange Board of India (SEBI) has granted its approval for the registration of Pragati Development Consulting Services Limited (PDCSL), a wholly-owned subsidiary of ICRA, as a Category-I ESG Rating Provider (ERP) under the SEBI’s Credit Rating Agencies Regulations. Pragati Development Consulting Services Limited applied for the ERP registration in September 2023.

Following the registration as ERP, PDCSL will commence its environmental, social, and governance (ESG) ratings. This development positions the ICRA Group among the few Indian companies that provide holistic risk-monitoring solutions, including ESG ratings and scores.

Pragati Development Consulting Services Limited (subject to the statutory approvals, the name of the PDSCL will be changed to ICRA ESG Ratings Limited) is a Category-I ESG rating Provider (ERP). It received SEBI registration under the SEBI (Credit Rating Agencies) Regulations, 1999, in April 2024. It is a wholly-owned subsidiary of ICRA Limited.

Commenting on the development, the MD & Group CEO of ICRA Ltd, Ramnath Krishnan, said, “The barometer of value creation is expanding from the tenets of profitability and efficiency – to businesses playing an active role in preserving, protecting and enriching their commitment towards the environment, society and transparency for every stakeholder. This widening perspective is also backed by investors, especially from the developed markets, a belief in prioritising investments towards compliant and sustainable companies.”

He further added, “At ICRA, we have always believed in offering solutions to help investors and lenders assess their risks through our suite of knowledge-led services. The ESG ratings will help us enrich our value proposition further.”

EVP – Business Development & Chief Business Officer of ICRA Ltd, L Shivakumar, stated, “This milestone demonstrates ICRA’s commitment to ESG assessment and its ability to provide comprehensive and reliable ESG ratings to the market. We are excited to serve our clients with the highest standards of professionalism and quality.”

About ICRA Limited

ICRA Limited was established in 1991 by leading commercial banks, financial services companies and financial/investment institutions as a professional and independent investment Information and Credit Rating Agency.

On April 29, 2024, the share price of ICRA Ltd opened at ₹5,297.85, touching the day’s high at ₹5,600.00, as of 1:59 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.