In an endeavor to make listed entities more responsible to
issues relating to the environment, elements of public interest and
their economic responsibilities, the SEBI has issued the prescribed
format for a Business Responsibility Report
("BRR") by a circular on November, 4,
2015 ("BRR Circular"). As per the
provisions of the Listing Regulations, the annual report of a
listed entity will have to contain the BRR, which will contain
disclosures/details, describing the initiatives taken by the listed
entity from an environmental, social and governance perspective.
The BRR Circular contains comprehensive principles to be adopted by
listed companies as part of their business practices and a
structured business responsibility reporting format and accordingly
the listed entity will be assessed regarding the compliances. Key
features of the BRR Circular are summarised below:
Listed entities that have been
submitting sustainability reports to overseas regulatory agencies
or stakeholders based on internationally accepted reporting
frameworks, will not be required to prepare a separate BRR,
provided they submit the same to their stakeholders with a mapping
of their report in comparison to guidelines prescribed under the
The format for the BRR includes
disclosures relating to information regarding the listed
entity's financials, directors, employee related policies,
consumer grievance mechanisms, company policies and the regularity
of director's assessment of the listed entity's business
Listed entities are to conduct
themselves as per the governance norms and principles provided for
in the BRR Circular, in relation to inter alia ethics,
transparency, accountability, sustainability of goods and services,
wellbeing of employees, promotion of human rights and wellbeing of
The circular will come into effect
within 90 (ninety) days of the notification of the Listing
Regulations, i.e., September 30, 2015.
The BRR Circular emphasizes that considering the fact that
listed entities have access to funds from the public, they have an
element of public interest involved and are therefore obligated to
make exhaustive continuous disclosures on a regular basis to the
public. The BRR Circular ensures that listed entities are made
responsible not only to their investors and customers but to their
employees and the environment, by incorporating policies for the
well-being of the same.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
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