Page 591 - ES 2020-21_Volume-1-2 [28-01-21]

218 Economic Survey 2020-21 Volume 1

formats for listed as well as unlisted companies. In its Report submitted in May
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2020, the Committee recommended a new reporting framework called the ‘Business
Responsibility and Sustainability Report (BRSR)’ to better reflect the intent and scope
of reporting on non-financial parameters by both listed as well as unlisted companies

above specified thresholds of turnover and/or paid-up capital. The Committee envisions
that the information captured through BRSR filings be used to develop a Business
Responsibility-Sustainability Index for companies.

(v) The Securities and Exchange Board of India (SEBI) through its ‘Listing Regulations’
in 2012 mandated the top 100 listed entities by market capitalization to disclose their
performance against the NVGs using a Business Responsible Report (BRR) format
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from an environmental, social and governance perspective. This was extended to top
500 listed entities in 2015-16. In December 2019, SEBI extended the BRR requirement
to top 1000 listed companies by market capitalization from 2019-20 . SEBI had also
9
issued a circular in 2017, which stated that Integrated Reporting may be adopted on a
10
voluntary basis from the financial year 2017-18 by the top 500 listed entities which are
required to prepare BRR.

(vi) Going beyond the innovative sustainability-themed capital market products such as
Green Bonds or Social Impact Bonds, India is moving in the direction of creating a
Social Stock Exchange (SSE), under the regulatory ambit of SEBI for raising capital
by Social Enterprises working for the realization of a social welfare objective. SEBI
constituted a Working Group (WG) on Social Stock Exchanges in September 2019 .
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The Working Group submitted the Report on 1 June 2020. The Working Group
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st
has outlined its vision and made recommendations, which include participation of
Non-profit organizations (NPOs) and For-profit enterprises (FPEs) on SSE subject

to committing to minimum reporting requirements. Additionally, the WG has also
recommended standardization of financial reporting by NPOs on SSE. In terms of the
recommendations of the WG, there is a need to develop a framework for on-boarding
NPOs and FPEs on the SSE prescribe disclosure requirements relating to financials,
governance, performance etc. and dwell upon aspects related to social impact, social
audit, and information repositories etc. In September 2020, SEBI has constituted a
technical group to develop and make recommendations on these aspects .
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http://www.mca.gov.in/Ministry/pdf/BRR_11082020.pdf
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https://www.sebi.gov.in/sebi_data/attachdocs/1344915990072.pdf
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http://egazette.nic.in/WriteReadData/2019/214955.pdf
9
https://www.sebi.gov.in/legal/circulars/feb-2017/integrated-reporting-by-listed-entities_34136.html
10
https://www.sebi.gov.in/media/press-releases/sep-2019/sebi-constitutes-working-group-on-social-stock-exchanges-
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sse-_44311.html
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https://www.sebi.gov.in/reports-and-statistics/reports/jun-2020/report-of-the-working-group-on-social-stock-
exchange_46751.html
13 https://www.sebi.gov.in/media/press-releases/sep-2020/sebi-constitutes-technical-group-on-social-stock-exchange_47607.
html