CRISIL Limited announced a change in the status of the ESG Rating Providers Association (ERPA). Due to the admission of new members into ERPA, the voting rights held by CRISIL ESG Ratings and Analytics Limited have sharply decreased from 50% to 11.11%. Consequently, ERPA no longer qualifies as an associate company of CRISIL Limited, effective following the recent membership expansion.
Change in Associate Company Status Confirmed
CRISIL Limited has formally disclosed a material change regarding the ESG Rating Providers Association (ERPA). ERPA was initially formed as a Section 8 Company limited by guarantee, involving CRISIL ESG Ratings and Analytics Limited, a wholly owned step-down subsidiary of CRISIL Limited.
Impact of Membership Expansion
The core reason for the status change is the admission of several new members into ERPA. This expansion resulted in the voting rights held by CRISIL ESG Ratings and Analytics Limited falling significantly from an initial 50% share down to 11.11%. As a direct result of this dilution of control, ERPA has ceased to be classified as an associate company of CRISIL Limited.
Regulatory Disclosure Details
In compliance with disclosure requirements, the company confirmed that the transaction does not involve the sale, lease, or disposal of an undertaking, nor does it constitute a related party transaction. The change in voting rights is entirely attributed to the admission of new members, all of whom are SEBI registered ESG Rating providers. No monetary consideration was involved in this change of control classification.
Source: BSE
