In the matter of Nectar Lifesciences Ltd - Dated May 31, 2023.
The Company sought an interpretative letter from the SEBI under the SEBI (LODR) Regulations, with a view to seek clarification for the doubts regarding the applicability of Business Responsibility and Sustainability Reporting ("BRSR").
Unfurling - Facts of the Case
- Nectar Lifesciences Ltd- Listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) since 2005.
- As on March 31, 2021, the Company made it among the top 1000 listed entities as per the market capitalization. However, it did not qualify as one of the top 1000 listed entities, as on March 31, 2022 and March 31, 2023.
Informal Guidance Sought on
- Whether Regulation 34(2)(f) of LODR Regulations read with SEBI Circular issued May 10, 2021- pertaining to the submission of Business Responsibility Report (“BRR”), to be replaced with the BRSR from March 31, 2023, shall be applicable on the Company or not?
- Since Regulation 3(2) of the LODR Regulations specify continuous compliance with BRR reporting, is the Company covered under the ambit of such sub-regulation?
SEBI’s response
- Since Regulation 3(2) of the LODR Regulations, was inserted as a sub-regulation with effect from 05 May, 2021, the Market Regulator clarified such continuous compliance for all top 1000 listed entities qualifying the market capitalization threshold as on March 31, 2022.
- Further, Regulation 34(2)(f) of the LODR Regulations r/w SEBI Circular issued May 10, 2021, mandated the submission of BRSR by top 1000 listed entities who satisfy the market capitalization requirement from FY 2022-23 onwards.
(Voluntary submission could be made by the top 1000 listed entities for FY 2021-22).
Final Verdict
Drawing reference to the stated provisions of LODR Regulations and the applicable SEBI Circular, the Company is not required to comply with the submission requirements of BRR or BRSR since the Company was among the top 1000 listed entities only in the FY ended March 31, 2021, and not thereafter.
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