Sebi gives nod to ICRA's arm to provide ESG ratings

New Delhi: Capital markets regulator Sebi has given approval to ICRA's subsidiary Pragati Development Consulting Services Ltd (PDCSL) to provide environmental, social, and governance (ESG) ratings.

This development positions the ICRA Group among the few Indian entities offering holistic risk-monitoring solutions, including ESG ratings and scores.

"Sebi has granted its approval for registration of PDCSL, a wholly-owned subsidiary of ICRA, as a Category-I ESG Rating Provider (ERP) under the Sebi's Credit Rating Agencies Regulations," ICRA said in a statement on Monday.

PDCSL applied for the ERP registration in September 2023.

Last week, Sebi approved Crisil ESG Ratings & Analytics as a Category 1 provider of ESG ratings.

In 2023, the Securities and Exchange Board of India (Sebi) amended its regulations pertaining to credit rating agencies, whereby ERPs can be allowed to register with the regulator under the CRA (Credit Rating Agencies) norms.