To ensure better compliance with corporate governance norms, Sebi has notified new rules making it mandatory for top 500 listed companies to prepare annual business responsibility reports, covering their activities related to environment and stakeholder relationships.
Presently, the business responsibility reports (BRs) are mandatory for top 100-listed entities based on market capitalisation at BSE and NSE.
The decision by Sebi is part of larger efforts to improve corporate governance practices and more transparency in terms of reporting of various socially responsible activities carried out by the listed entities.
The move comes after Sebi’s board approved the decision last month.
The Securities and Exchange Board of India (Sebi) has now made it applicable for top 500 listed companies, based on their market capitalisation at the end of March every year, to submit business responsibility reports, it said in a notification.