Brickwork Ratings
SEBI-registered Indian credit rating agency, smallest of seven licensed CRAs.
On the record
Checkpoint: Window closes on 2-3 year clean regulatory record test for new CEO/Chairman before next SEBI review cycle
The call
Brickwork's license keeps AI and most rivals out, but its own regulator remains the biggest threat to its survival.
Brickwork Ratings gives credit ratings to Indian companies and bonds, a job that requires government permission (a license from India's financial regulators). Three bigger competitors control most of the market, but they cannot easily replace Brickwork because each one needs its own separate license and customers often use multiple raters. The real threat is not competitors or computer programs, but the government itself: Brickwork almost lost its license in 2022 for rule violations, got it back on appeal, then faced new complaints in 2023 and settled them in 2024. The company has new leadership as of early 2024, so the key question is whether the regulators stay satisfied or come after Brickwork again.
Why
01
AI pressure: None apparent. AI cannot issue a SEBI or RBI-recognized rating, so it cuts costs internally rather than replacing the license itself. Could AI do the core job? Unlikely.
02
Bigger players: CRISIL (S&P Global), ICRA (Moody's), CARE Ratings. These three control roughly 70 to 80 percent of the Indian ratings market, leaving Brickwork to fight for scraps among the smaller players. Could a giant copy it? Probably.
03
What protects it. SEBI registration plus RBI ECAI accreditation, a license that AI and most new entrants cannot obtain or replicate.
What would change this call
SEBI issues any new Show Cause Notice or enforcement action against BWR within 12-18 months. Would show regulatory lapses recurring despite 2024 leadership changes.
RBI reviews or withdraws BWR's ECAI accreditation for bank risk-weighting. Would signal existential loss of the regulatory moat protecting BWR's business.
BWR publishes market-share or ratings-mandate volume data under Kedia/Nayar leadership. Would show whether clients are returning or continuing to shift to CRISIL, ICRA, CARE.
RBI reviews or withdraws BWR's ECAI accreditation for bank risk-weighting. Would signal existential loss of the regulatory moat protecting BWR's business.
BWR publishes market-share or ratings-mandate volume data under Kedia/Nayar leadership. Would show whether clients are returning or continuing to shift to CRISIL, ICRA, CARE.
Key numbers
- One of only 7 SEBI-registered CRAs in India
- Big three hold ~70-80% combined market share
- SEBI license cancelled Oct 2022, overturned Jun 2023
Named risks
- Recurrence of SEBI enforcement action given prior 'multiple lapses' finding and 2023 Show Cause Notice.
- Loss of RBI ECAI accreditation would eliminate regulatory capital-adequacy recognition, an existential threat.
- Unproven new CEO (Feb 2024) and Chairman (Apr 2024) installed under regulatory pressure, governance track record still forming.
- Structural market disadvantage versus CRISIL/ICRA/CARE's combined 70-80% share limits growth ceiling.
- Revenue and financial data largely unverified third-party estimates, limiting external assessment of financial health.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| CRISIL (S&P Global) | losing to | Holds ~50-60%+ of Indian bank-loan/bond rating market as of Jul 2024, dwarfing BWR |
| ICRA (Moody's) | losing to | Part of top-3 CRAs controlling 70-80% combined Indian market share, 2017 study |
| CARE Ratings | losing to | Part of top-3 CRAs controlling 70-80% combined Indian market share, 2017 study |
| India Ratings (Fitch) | contesting | One of seven SEBI-registered CRAs competing in the same licensed segment as of Oct 2022 |
| Acuité Ratings | contesting | Smaller SEBI-registered peer competing for issuer mandates alongside BWR since 2022 |
Questions people ask
- Did Brickwork Ratings lose its SEBI registration?
- SEBI cancelled Brickwork Ratings' license in October 2022 citing 'multiple lapses,' but the Securities Appellate Tribunal quashed that order in June 2023. A further Show Cause Notice followed in December 2023, ultimately resolved via monetary settlement in December 2024 without admission of guilt.
- Can AI replace Brickwork Ratings' credit rating business?
- No. Bank capital-adequacy treatment requires ratings from a SEBI-registered CRA with RBI ECAI accreditation, which Brickwork Ratings holds as of July 16, 2024. An AI system without that licensing produces ratings with zero regulatory recognition, so AI can augment analysts but cannot substitute the licensed core product.
- Who owns Brickwork Ratings and is it publicly traded?
- Brickwork Ratings is privately held with no public listing or ticker. Canara Bank, a public-sector Indian bank, took a strategic 10% equity stake in July 2013 and remains a promoter shareholder. Founder Vivek Kulkarni serves as Managing Director alongside Executive Director Sangeeta Kulkarni.
- Who is Brickwork Ratings' biggest competitor?
- CRISIL, majority owned by S&P Global, is the dominant incumbent, historically holding roughly 50 to 60 percent plus of India's bank-loan and bond rating market as of July 2024. Together with ICRA and CARE, the top three CRAs control an estimated 70 to 80 percent of the Indian market, per a 2017 competition study.
- What caused Brickwork Ratings' 2022 regulatory crisis?
- SEBI cancelled Brickwork Ratings' registration on October 7, 2022, citing 'multiple lapses' in its rating functions and ordered it to wind down within six months. The company argued the order would jeopardize over 300 employees. The Securities Appellate Tribunal overturned the cancellation on June 6, 2023.
- Is Brickwork Ratings growing or shrinking as a company?
- It remains one of the smallest of seven SEBI-registered credit rating agencies in India, well behind CRISIL, ICRA and CARE's combined 70 to 80 percent market share (2017 study). As of a 2022 CII report it had cumulatively rated fixed deposits and commercial paper worth over 84,580 crore rupees.
Timeline
- 2024-12SEBI settlement order resolves post-2022 enquiry via monetary settlement, no admission of guilt
- 2024-07-16RBI approves Brickwork Ratings for bank risk-weighting capital-adequacy claims (ECAI status)
- 2024-04-23Santosh B. Nayar appointed independent Chairman after SEBI directive to broad-base board
- 2024-03-26SEBI lifts restrictions, Brickwork Ratings resumes full business and new client onboarding
- 2024-02-26Alok Kedia appointed Managing Director and CEO
- 2023-12-22SEBI issues Show Cause Notice continuing regulatory scrutiny
- 2023-06-06Securities Appellate Tribunal quashes SEBI's license cancellation order
- 2022-10-07SEBI cancels Brickwork Ratings' registration citing 'multiple lapses,' orders wind-down in 6 months
- 2013-07-10Canara Bank takes strategic 10% equity stake in Brickwork Ratings
- 2008Brickwork Ratings registered with SEBI after founding in 2007
Revision history
22 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Nearly Rs. 5 Lakh Crores of Outstanding Debt in Indian Market have been Rated by BWR (2016-09-20)
- Sebi orders Brickwork Ratings to shut shop in 6 months (2022-10-07)
- Sebi cancels licence of Brickwork Ratings for 'multiple lapses' (2022-10-07)
- SAT quashes SEBI order cancelling Brickwork Ratings' licence (2023-06-06)
- SEBI Settlement Order (2024-12)
- BWR resumption of business announcement (2024-04-02)
- Brickwork Ratings (BWR) approved by RBI for Bank Risk-Weighting Claims (2024-07-16)
- Brickwork Ratings expands board, appoints Santosh Nayar as chairman (2024-04-23)
- Canara Bank invests in Brickwork Ratings (2013-07-10)
- CII Brickwork Ratings Report (2022-09)
- Study of Competition Among Credit Rating Agencies in India (2017-02-28)
- Triple A (2024-07-17)