According to reports, the market regulator Securities and Exchange Board of India (SEBI) has decided to mandate the preparation of the annual business responsibility report (BRs) for companies in the top 1,000 listed companies.
The report shall include the listed entities’ shareholder relationships, social, environment and corporate governance.
As of now, only the top 500 companies are required to prepare the BRs. The companies are ranked based on market capitalisation on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
In a statement, the market regulator said that “The board of SEBI approved a proposal to extend the applicability of Business Responsibility Reporting to top 1,000 listed securities”.
The decision was made to ensure transparency in the activities concerned with the environment and also to improve the listed companies’ compliance with the corporate governance norms.
The last time the market regulator had issued a notification on the same was in December 2015 where BR reporting was made mandatory for the top 500 companies.
The top 1,000 companies listed will be based on the market capitalisation at the end of every financial year, i.e. March.