Question map
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?
Explanation
Statement I is incorrect. The Securities and Exchange Board of India (SEBI) - not the Reserve Bank of India - has mandated the top 1,000 publicly listed companies (by market capitalisation) to make annual ESG disclosures under the Business Responsibility and Sustainability Report (BRSR) framework.[1] Therefore, the mandate comes from SEBI, not RBI, and applies only to the top 1,000 listed companies, not all listed companies.
Statement II is correct. BRSR reporting is a comprehensive framework that seeks to promote sustainable business, responsible management of the environment, and corporate governance.[2] The BRSR framework focuses on Environmental, Social, and Governance (ESG) disclosures, which are predominantly non-financial in nature, covering aspects like environmental impact, social responsibility initiatives, and governance practices rather than traditional financial metrics.
Since only Statement II is correct, the answer is option B.
SourcesPROVENANCE & STUDY PATTERN
Guest previewThis is a classic 'Regulator Swap' trap disguised as a technical question. The difficulty isn't the acronym (BRSR), but spotting the jurisdictional error: RBI regulates banks, while SEBI regulates listed companies. It's a Current Affairs topic (ESG norms) tested on static polity/economy logic.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Does the Reserve Bank of India mandate that all listed companies in India submit a Business Responsibility and Sustainability Report (BRSR)?
- Statement 2: Do companies submitting a Business Responsibility and Sustainability Report (BRSR) in India make disclosures that are largely non-financial in nature?
- Specifies which regulator (SEBI) mandated BRSR disclosures, not the Reserve Bank of India.
- Makes clear the scope: the mandate applies to the top 1,000 publicly listed companies (by market cap).
- States that SEBI replaced the earlier BRR with BRSR.
- Explicitly notes the BRSR mandate applies to the top 1,000 listed entities.
- Confirms the reporting requirement applies to the top 1,000 listed companies and is specified by SEBI.
- Supports that the obligation comes from SEBI's reporting format, not from the Reserve Bank of India.
Mentions a Committee constituted to review and update the Business Responsibility Reporting (BRR) formats for listed as well as unlisted companies — showing BRR/BRSR is a topic handled via specific reporting formats and committee review.
A student could follow this clue to check which regulator or ministry constituted that committee or issued the BRR/BRSR formats (to see if it was RBI or another regulator).
Defines the Reserve Bank of India's regulatory scope with respect to banks (Scheduled Commercial Banks) and obligations RBI imposes on banks — indicating RBI's primary remit is banking-sector regulation.
A student could use this to infer that mandates applying to 'all listed companies' (a broader corporate population) might come from a regulator with corporate-market jurisdiction rather than from RBI, and thus check which regulator governs listed companies' disclosure rules.
Shows RBI issues mandates to banks (e.g., priority sector lending percentages) — illustrating RBI does issue broad compulsory rules, but typically targeted at banks.
A student could combine this pattern (RBI mandates banks) with the fact that 'listed companies' are a broader, different group and therefore should verify whether RBI's mandate practice extends beyond banks to all listed firms.
Gives an example of an RBI directive ('Storage of Payment System Data') directed at payment system providers — demonstrating RBI can and does issue operational directives to entities within its supervisory scope.
A student could use this to check whether BRSR is addressed to entities in RBI's supervisory scope (e.g., banks, payment providers) or to the wider set of listed companies.
Describes a committee (P J Nayak) and recommendations for bank governance review — another example of sector-specific committees and reforms focused on banks, not all listed companies.
A student could extrapolate that governance/reporting mandates are often developed via sectoral committees and therefore seek which committee or regulator produced the BRSR requirement for listed companies.
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