Consider the following statements:
I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).
II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.
Which of the statements given above is/are correct?
Detailed Explanation:
Correct Answer: ✅ Option 2 (II only)
The Business Responsibility and Sustainability Report (BRSR) is an ESG (Environmental, Social, and Governance) disclosure framework introduced by Securities and Exchange Board of India to improve transparency regarding a company's sustainability practices and social responsibility.
❌ Statement I is Incorrect: BRSR reporting is mandated by SEBI, not by the Reserve Bank of India. It is applicable to the top 1,000 listed companies by market capitalization.
✅ Statement II is Correct: BRSR mainly contains non-financial disclosures related to environmental performance, social responsibility, employee welfare, governance practices, and sustainability initiatives.
Short Notes: Business Responsibility and Sustainability Report (BRSR)
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BRSR was introduced by SEBI to strengthen ESG disclosures.
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It is mandatory for the top 1,000 listed companies by market capitalization.
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It replaced the earlier Business Responsibility Report (BRR) framework.
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BRSR focuses on Environmental, Social, and Governance (ESG) parameters.
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Most disclosures are non-financial in nature.
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It is based on the National Guidelines on Responsible Business Conduct (NGRBC).
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The framework improves corporate transparency and sustainability reporting.
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