Question
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?
AI only
BII only
CBoth I and II
DNeither I nor II
Correct Answer: B
Explanation
The
Business Responsibility and Sustainability Report (BRSR) is a framework for reporting a company’s
Environmental, Social and Governance (ESG) performance. It is designed to enhance transparency beyond traditional financial reporting.
Statement I: The Reserve Bank of India mandates all the listed companies…
This is incorrect. The authority mandating BRSR is the
Securities and Exchange Board of India (SEBI), not the RBI. Under
SEBI (LODR) Regulations, 2015, the top 1000 listed companies (by market capitalization) are required to submit BRSR. RBI has no such mandate over listed companies in this context.
Statement II: BRSR disclosures are largely non-financial in nature
This is correct. BRSR focuses on
non-financial disclosures such as environmental practices, social responsibility, corporate governance, labour policies, and sustainability measures. These help assess a company’s long-term ethical and sustainable performance.
Therefore, only Statement II is correct.