Based on the requirements of Regulation 34(f) of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), the top 1,000 listed entities in India are filing the Business Responsibility and Sustainability Reporting (BRSR) as part of their annual report from Financial Year (FY) 2022-23. BRSR includes disclosures on the reporting entity’s performance in relation to the nine principles of the ‘National Guidelines on Responsible Business Conduct’ (NGBRCs) issued by the Ministry of Corporate Affairs (MCA) in 2019.
Further, on 12 July 2023, SEBI introduced specific requirements for the top 1,000 listed entities to include a set of Key Performance Indicators (KPIs)/metrics relating to the nine ESG attributes as part of the respective entity’s BRSR (hereinafter referred to as BRSR Core). Additionally, SEBI prescribed reporting a requirement related to company’s value chain, on a comply-or-explain basis from FY 2024-25. In addition to these reporting requirements, SEBI required reporting entities to obtain reasonable assurance in relation to BRSR Core (starting with the top 150 listed entities in India from FY 2023-24 onwards) from an independent competent agency and limited assurance on a comply or explain basis in relation the value chain disclosures from FY 2025-26.
Pursuant to an announcement of the Union Budget for FY 23-24, an expert committee (the Committee) was formed with an objective to review the provisions of LODR Regulations and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), from the point of view of facilitating ease of doing business. The Committee deliberated the public comments received in response to SEBI’s press release dated 4 October 2023,which invited comments for simplifying, easing and reducing the cost of compliance under various SEBI regulations. These public comments, inter-alia, included comments on the regulatory framework for BRSR.
