SEBI grants ICRA subsidiary PDCSL approval for ESG ratings

SEBI grants ICRA subsidiary: Capital markets regulator SEBI has greenlit Pragati Development Consulting Services Ltd (PDCSL), a subsidiary of ICRA, to offer environmental, social, and governance (ESG) ratings, strengthening the ICRA Group's portfolio of comprehensive risk-monitoring solutions.

According to ICRA's statement released on Monday, SEBI's approval designates PDCSL as a Category-I ESG Rating Provider (ERP) under Sebi's Credit Rating Agencies Regulations.

PDCSL's application for ERP registration was filed in September 2023, marking a significant milestone in its journey towards becoming a recognised player in the ESG ratings domain.

This regulatory nod underscores SEBI's commitment to fostering transparency and accountability in the financial landscape by facilitating access to ESG-related information for investors and stakeholders.

The approval of Crisil ESG Ratings & Analytics as a Category 1 provider of ESG ratings last week further emphasises the growing recognition and demand for ESG evaluation services in the Indian market.

SEBI's regulatory amendments in 2023, particularly pertaining to credit rating agencies, paved the way for ESG Rating Providers (ERPs) to register under the CRA (Credit Rating Agencies) norms. This move aligns with global trends, highlighting the increasing importance of ESG considerations in investment decisions.

ICRA's strategic expansion into ESG ratings aligns with industry shifts towards sustainable investing, reflecting a broader trend of integrating environmental, social, and governance factors into investment strategies.

(with PTI inputs)