BSE : Business Responsibility & Sustainability Report

Business Responsibility and Sustainability Report for FY 2023-2024

About BRSR

The Business Responsibility and Sustainability Report (BRSR) is a framework developed by the Securities and Exchange Board of India (SEBI) to promote responsible and sustainable business practices among listed companies in India. Introduced in 2021, the BRSR builds upon the earlier Business Responsibility Reporting (BRR) framework and aims to enhance the quality and comprehensiveness of ESG (Environmental, Social, and Governance) disclosures.

The BRSR framework requires the top 1,000 listed companies (by market capitalization) on Indian stock exchanges to report their ESG-related information in a structured manner. It encompasses a wide range of parameters, including environmental impact, social initiatives, governance practices, stakeholder engagement, and business ethics. The objective is to provide stakeholders with a holistic view of a company's sustainability performance and its contribution to the overall well-being of society.

Under the BRSR, companies are required to disclose relevant ESG information in their annual reports or through a separate sustainability report. The framework encourages companies to adopt a strategic approach towards sustainability, integrate ESG considerations into their business models, and align their practices with internationally recognized frameworks and principles.

Executive Summary

BSE is committed to upholding the principles of Business Responsibility and Sustainability Reporting (BRSR) framework, mandated by the Securities and Exchange Board of India (SEBI), for the top 1,000 listed companies in India. BSE views BRSR reporting not merely as a regulatory requirement but as an integral part of its corporate ethos, recognizing the significant role of Environmental, Social, and Governance (ESG) factors in today's business environment. By adhering to BRSR, BSE actively demonstrates its dedication to transparency and sustainability, acknowledging the importance of comprehensive ESG reporting for investors, stakeholders, and society as a whole.

BSE diligently follows the guiding principles of the BRSR framework. Adhering to the first principle, it has implemented robust policies such as Whistle Blower policy, Codes of Ethics for Directors and Key Management Personnel, and a comprehensive Ethical Code of Conduct for all employees, underscoring its commitment to integrity, transparency, and accountability. Moreover, BSE's procurement strategy exemplifies its dedication to principle two, prioritizing safety and minimizing resource consumption.

In line with principle three, BSE fosters an inclusive workplace environment, providing facilities for differently abled individuals and promoting ethical conduct and open dialogue among employees. Comprehensive employee benefits, including medical insurance and health and wellness programs, contribute to employee well-being. Pursuant to principle four, stakeholder engagement is a priority for BSE, with various communication channels available for stakeholders to provide input on economic, environmental, and social issues. The company actively addresses shareholder queries and maintains a dedicated CSR & ESG committee to fulfil its societal responsibilities.

Embodying principle five, BSE integrates human rights awareness into its employee induction program and upholds policies against sexual harassment and for grievance redressal, ensuring the fair treatment of all individuals within the organization. With respect to principle six, environmental sustainability is a key focus for BSE, with initiatives such as rainwater harvesting, energy conservation measures, and plastic bottle recycling at its Mumbai facilities.

In terms of principle seven, BSE collaborates with trade and industry chambers to positively influence regulatory policies. Addressing principle eight, BSE has demonstrated its commitment to inclusive growth through its CSR initiatives. Notably, contributions to the Prime Minister's National Relief Fund aid the public indiscriminately, and support for the Indian Cancer Society has directly affected individuals in need. Fulfilling principle nine, BSE prioritizes responsible customer engagement through comprehensive policies on cybersecurity and data privacy, as well as investor protection measures such as the Investor Protection Fund. The company also champions financial literacy among investors, extending educational outreach to college and university students.

Overall, BSE's adherence to the BRSR framework reflects its steadfast dedication to operating as a socially responsible, inclusive, and transparent organization, contributing to sustainable development within the parameters of BRSR.

Note: The numbers are rationalised in this year's BRSR, wherever required.

Business Responsibility & Sustainability Report

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SECTION A: GENERAL DISCLOSURES

1. Details of the listed entity

Sr.	Particulars	Response
No.
1.	Corporate Identity Number (CIN) of the Listed Entity	L67120MH2005PLC155188
2.	Name of the Listed Entity	BSE Limited
3.	Year of incorporation	2005
4.	Registered office address	25th floor, P.J. Towers, Dalal Street, Fort, Mumbai 400 001
5.	Corporate address	25th floor, P.J. Towers, Dalal Street, Fort, Mumbai 400 001
6.	E-mail	[e-mail]
7.	Telephone	022 22721233/4
8.	Website	www.bseindia.com
9.	Financial year for which reporting is being done	FY 2023-2024

10. Name of the Stock Exchange(s) where shares are listed

Name of Exchange	Scrip Code
National Stock Exchange (NSE)	BSE

11. Paid-up Capital

Rs. 27,07,52,718

12. Name and contact details (telephone, email address) of the person who Mr. Kiran Patil

may be contacted in case of any queries on the BRSR report022-22728147 [e-mail]

13. Reporting boundary - Are the disclosures under this report made on a Standalone basis standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for

the entity and all the entities which form a part of its consolidated financial statements, taken together)

14.	Name of assurance provider	Not applicable
15.	Type of assurance obtained	Not applicable

Henceforth referred to as "BSE", "We", Company, or "BSE Ltd."

1. Products/services
   16. Details of business activities (accounting for 90% of the turnover):

S r. Description of Main Activity	Description of Business Activity	% of Turnover of the entity
No.
1	Financial and insurance services	Other financial services	100%

97	ANNUAL REPORT	2023-2024

17. Products/Services sold by the entity (accounting for 90% of the entity's Turnover):

S.	Product/Service	NIC Code	% of total Turnover contributed
No.
1	Securities Services	66110	62
2	Services to Corporates	66110	34
3	Data dissemination fees	66110	4
	Total		100

III. Operations
18. Number of locations where plants and/or operations/offices	of the entity are situated:
	Location	Number of plants	Number of offices	Total
	National	0	28	28
	International	0	0	0
19. Markets served by the entity:
a. Number of locations
		Locations	Number
		National (No. of States)	28 states and 8 Union Territories
		International (No. of Countries)	Nil

1. What is the contribution of exports as a percentage of the total turnover of the entity? 3%
2. A brief on types of customers
   BSE is a capital market where savings and investments are channelled between suppliers and those requiring capital. BSE provides a secured, efficient and transparent platform for listing and trading in equity, currencies, debt instruments, derivatives, mutual funds and other securities as permitted by the regulator. BSE's Sensex serves as an economic barometer indicating financial growth of the country. Our customers are as below:
   Companies listed on BSE exchange platform:
   BSE serves as a market for selling and buying of securities of corporates, government, institutions etc. The companies/institutions who need to raise capital in their early stages / for expansion purpose, list and sell their securities to investors such as general public, financial institutions etc. through the platform provided by the stock exchange. Regulatory guidelines are followed while listing any company/ institution on the stock exchange. All the security dealings at the exchange are controlled as per rules and regulations laid down by the exchange and regulatory bodies.
   Members/Brokers trading on the exchange platform:
   These are licensed traders who are authorised to buy and sell securities on the exchange platform. Typically, members/brokers buy and sell securities on behalf of their end customers who could be general public, company, institution etc. The dealings of the members/ brokers are governed by the exchange as per rules and regulations laid down by the exchange and regulatory bodies.
   Data Vendors:
   BSE Information Products offers an extensive range of market data and reference data products (Real Time, Delayed, End of day, Historical) to a wide range of customers including Data Vendors, Charting Software Vendors, Algo Traders, Websites, Television Channels, Mobile app developers, Custodians etc.

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IV. Employees

20. Details as at the end of Financial Year:

a. Employees and workers (including differently abled):

Sr.

Particulars

Total (A)

Male

Female

No

No. (B)

% (B / A)

No. (C)

% (C / A)

EMPLOYEES

1

Permanent (D)

518

378

72.97

140

27.03

2

Other than Permanent (E)

560

436

77.86

124

22.14

3

Total employees (D + E)

1078

814

75.51

264

24.49

WORKERS

4

Permanent (F)

Nil

Nil

Nil

Nil

Nil

5

Other than Permanent (G)

Nil

Nil

Nil

Nil

Nil

6

Total workers (F + G)

Nil

Nil

Nil

Nil

Nil

b. Differently abled Employees and workers:

Sr.

Particulars

Total (A)

Male

Female

No

No. (B)

% (B / A)

No. (C)

% (C / A)

DIFFERENTLY ABLED EMPLOYEES

1

Permanent (D)

Nil

Nil

Nil

Nil

2

Other than Permanent (E)

Nil

Nil

Nil

Nil

3

Total employees (D + E)

Nil

Nil

Nil

Nil

21. Participation/Inclusion/Representation of women

Total (A)

No. and percentage of Females

No. B

% (B / A)

Board of Directors

9

2

22

Key Management Personnel

12

2

17

22. Turnover rate for permanent employees and workers

FY - 2023-2024

FY - 2022-2023

FY - 2021-2022

(Turnover rate in current FY)

(Turnover rate in previous FY)

(Turnover rate in the year prior

to previous FY)

Male

Female

Total

Male

Female

Total

Male

Female

Total

Permanent Employees

14

20

16

15

19

16

15

17

15

Permanent Workers

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

99	ANNUAL REPORT	2023-2024

1. Holding, Subsidiary and Associate Companies (including joint ventures) 23. (a) Holding Subsidiary and Associate Companies (including joint ventures)

S.	Name of the holding / subsidiary / associate	Indicate whether	% of shares held	Does the entity indicated at column
No. companies / joint ventures (A)	holding/	by listed entity	A, participate in the Business
		Subsidiary/		Responsibility initiatives of the
		Associate/ Joint		listed entity? (Yes/No)
		Venture
1	Indian Clearing Corporation Limited (ICCL)	Subsidiary	100	Yes*
2	BSE Investments Limited	Subsidiary	100	Yes*
3	BSE Institute Limited	Subsidiary	100	Yes*
4	BSE Technologies Private Limited (BTPL)	Subsidiary	100	Yes*
5	BFSI Sector Skill Council of India Limited	Associate	48.78	Yes*
6	BSE Administration and Supervision Limited (BASL)	Subsidiary	100	Yes*
7	BSE CSR Integrated Foundation	Subsidiary	75	Yes*
8	India International Clearing Corporation (IFSC) Limited	Subsidiary	60.53	No
	(India ICC)
9	India International Exchange (IFSC) Limited ( India INX)	Subsidiary	62.87	No
10	Asia Index Private Limited	Joint Venture	50	No
11	Central Depository Services (India) Limited (CDSL)	Associate	15	No

*Participation in the BRSR initiatives is done wherever feasible.

VI. CSR Details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) - Yes

1. Turnover in lakhs (`): 1,02,098
2. Net Worth in lakhs (`): 2,73,542

VII. Transparency and Disclosure Compliances

25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder	Grievance Redressal Mechanism in Place (Yes/No)		FY 2023-2024			FY 2022-2023
group from	(If Yes, then provide web-link for grievance redress
Number of	Number of	Remarks	Number of	Number of	Remarks
whom complaint	policy)
complaints	complaints		complaints	complaints
is received
	filed during	pending		filed during	pending
		the year	resolution		the year	resolution
			at close of			at close of
			the year			the year
Communities	Yes.https://www.bseindia.com/static/about/contact_us.aspx	10	4	Nil	3	1	Nil
Investors (other	Not Applicable	0	0	Nil	0	0	Nil
than share holders)
Shareholders	Yes	55	0	Nil	7	0	Nil
	https://www.bseindia.com/investor_relations.html

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Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder	Grievance Redressal Mechanism in Place (Yes/No)
group from	(If Yes, then provide web-link for grievance redress
whom complaint	policy)
is received

	FY 2023-2024			FY 2022-2023
Number of	Number of	Remarks	Number of	Number of	Remarks
complaints	complaints		complaints	complaints
filed during	pending		filed during	pending
the year	resolution		the year	resolution
	at close of			at close of
	the year			the year

Employees and	Yes. The policy related to employee grievance redressal is	3,114	0	Nil	3,685	0	Nil
workers	available on the internal portal of the company
Customers*	Yes.	2	2	Nil	0	0	Nil
	https://www.bseindia.com/members.html
Value Chain	Yes. The value chain partners can raise their concerns/	0	0	Nil	0	0	Nil
Partners	grievances with their respective relationship manager, point
	of contact or reporting manager
Others (please	-	0	0	Nil	0	0	Nil
specify)

101	ANNUAL REPORT	2023-2024

3. Quarterly Mock drills to ensure all DR functionalities are working appropriately.

4. Redundant connectivity available from 2 different service providers.

5. All our Applications, Servers, Network & Security Devices have built-inredundancy. In case of a hardware failure our systems are equipped to fall back on the redundant setup, either automatically or manually as design may be.

6. All applications and systems have a DRS (Disaster Recovery Site) setup with performance & capacity similar to PDC (Primary Data Centre).

7. We have complete automation of all our BOD (Beginning of day) and EOD (End of day) activities both at PDC and DRS. The invoke/switchover of systems to DRS and switching back to PDC is also completely automated.

8. Regular backup is scheduled and performed of critical databases.

9. Proper Release & Version Management System in place to ensure timely release & code sync between PR and DR sites. All changes on PDC and DRS is followed by mock on the Live environment.

2. Monthly automated checks of DR service availability.

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26. Overview of the entity's material responsible business conduct issues

S.	Material issue identified	Indicate	Rationale for identifying the risk/	In case of risk, approach to adapt or mitigate	Financial implications of
No.		whether risk	opportunity		the risk or opportunity
	or opportunity			(Indicate positive or
		(R/O)			negative implications)
1.	Data Privacy & Data Security	Risk	Protection of Classified Corporate Information /	BSE Ltd has established data privacy policy to manage	Negative
			Data from unauthorized access / use, unauthorized	the privacy of personal information collected, received,
			Change / modification, unauthorized disruption /	processed, stored, dealt with or handled by the organization
			destruction of information, unauthorized transfer	or on behalf of the organization and to establish and
			on removable or any other media, unauthorized	implement necessary processes and controls to ensure the
			deletion, and unauthorized disclosure, inspection	privacy of personal information handled by the organization
			or recording.	or on behalf of the organization. BSE has 24X7 365 Days,
			In this world of digitalization, cyber-attacks	Next Gen Cyber Security Operation Centre to monitor such
			cyber alerts. Whenever there is an alert, BSE Next Gen SOC
			have increased exponentially. This includes	team takes necessary action.
			Ransomware attacks including sabotage to
			computer systems. Reputational damage from	Regulatory Systems, Networks and Cyber Audits are
			hacktivism (e.g. Maze attack). Unintended impacts	performed Bi-Annually.
			from the use of cyberspace	Periodical training and awareness programs are conducted
			Data Privacy is the right to have some control
			by IT Security team for employees and contractual staff on
			over how your personal information is collected,	cyber security.
			used and shared. "Privacy encompasses the rights	General awareness in the form of computer screen savers
			and obligations of individuals and organizations
			with respect to the collection, use, disclosure and	on the importance of various cyber security measures, cyber
			retention of personally identifiable information"	vigilance, non-sharing of confidential information etc. are
			posted periodically.
2.	Business Continuity Risk	Risk	Any delay in achieving DR - RTO and RPO by	1. Established process to implement all changes at Disaster	Negative
			organization could result into financial risk and	recovery as soon as it is implemented at Primary site.
			business reputation.

S.	Material issue identified	Indicate	Rationale for identifying the risk/	In case of risk, approach to adapt or mitigate	Financial implications of
No.		whether risk	opportunity		the risk or opportunity
	or opportunity			(Indicate positive or
		(R/O)			negative implications)

						10.	All BSE applications/systems can be accessed via
							multiple locations to perform Operations and monitoring.
							Remote accessibility via secured connectivity.
						11.	Well-planned DR & BCP yearly planner to ensure
							appropriate DR Mock & Live Testing including various
							Business Continuity Scenarios (BCP) in alignment with
							BCMS ISO 22301-2019 certification.
						12.	Training & Awareness sessions scheduled at regular
							intervals to ensure competency of employees.
3.	Hardware/ Software	Risk	Any malfunctioning of critical hardware and	Hardware-	Negative
			Malfunction		software with higher down time could disrupt the	1.	Hardware redundancy.
					business operations.	2.	Periodic upgradation of critical hardware resources.
						3.	Tracking of warranties and AMCs.
						4.	Ensuring proper system support environment for critical
							hardware resources.
						5.	Additional stock of critical components.
						6.	SLAs with vendors and suppliers.
						7.	Proper capacity planning.
						Software-
103					1.	Ensuring proper documentation of Business requirement
					specifications.
						2.	Thorough User Acceptance Testing (UAT).
						3.	Ensuring proper validation of software licenses.
						4.	Timely application of security and upgrade patches.
						5.	Proper implementation of security software.
						6.	Periodic review of access rights.
						7.	Proper capacity planning.
						8.	Maintenance of log and audit trail of changes made in
							software.
4.	Third-Party Risk	Risk	Absence or inappropriate oversight of critical	BSE has put in place effective control procedures to govern	Negative
					third-party IT vendor/ suppliers could impact	the third party personnel and vendors, during the selection,
					the company ability to achieve its objectives and	service and separation.
ANNUAL					disrupt operations.	The vendor's reputation and service history, ability to serve
					during exigencies and ensuring regulatory compliances are
					part of RFP/selection document and given due weightage
					during selection and monitored during service delivery.
REPORT
					The process of periodic vendor evaluation is in place to
					proactively plug any issues which may impact operations.
					There is no dependency on one particular vendor.
2023-
					Certain items like desktops and laptops are kept in spare
					which can take care of any immediate requirements.
2024
					We normally buy IT equipment with 4 to 5 years warranty
					which is directly from the OEM.

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S.	Material issue identified	Indicate	Rationale for identifying the risk/	In case of risk, approach to adapt or mitigate	Financial implications of
No.		whether risk	opportunity		the risk or opportunity
	or opportunity			(Indicate positive or
		(R/O)			negative implications)
5.	Outsourcing Risks	Risk	Risk arising from failure or delay in providing the	Vendor service level agreements are designed in a way	Negative
			services from outsourced partners/vendors and	to include regulatory compliance requirements, sufficient
			high attrition of vendor staff could result into delay/	resources in reserves on vendor side are ensured to meet
			non-compliance with regulatory requirements.	exigencies or immediate requirements from regulators.
				The monitoring of the outsourced functions are supervised
				by BSE IT Management Team and vendor staff is stationed
				at BSE premises only.
				Once a vendor has been on-boarded, risk assessments are
				performed to minimize any operational, regulatory, strategic,
				cybersecurity and financial risk. These risk assessments are
				carried out based on industry best standards, regulatory
				and legal requirements. Vendors are required to handle and
				secure the confidentiality, integrity and availability of the
				organization's information. As part of vendor monitoring, SLA
				monitoring, vendor performance management and periodic
				review meetings are also conducted.
6.	Non-compliance with	Risk	Any instance of regulatory non-compliance	1. Dedicated department which is responsible for SEBI	Negative
	applicable laws and		or receipt of notices from regulators/statutory	related compliance, corporate laws, Labour laws, Tax
	regulations		authorities could result into monetary penalty and	laws etc is established.
			reputational risk for company.	2. Periodic review by SEBI prescribed Committee's
				(Regulatory oversight committee).
				3. Implementation of Legatrix Software to monitor
				compliance to all laws.
				4. Review by Internal audit department.
				5. Secretarial Audit, Internal Audit and External audit.
				6. Reporting to Audit committee.
7.	Physical building security	Risk	BSE is one of the few public institutions of	Bollards/Crash Barriers are installed at 5 approach points to	Negative
			national importance in India. It is synonymous with	prevent vehicle from reaching the BSE premises. No vehicles
			development of capital markets and investments	(except essential services vehicles like Police, Cash Van,
			in India. Considering its significance to the	Ambulance etc.) are permitted to enter BSE premises. The
			economy and people of India, it was the BSE	BSE building is guarded by 4 levels of security including
			building which was the first place of attack in the	BSE's personnel security and Mumbai Police. Periodical
			1993 serial bomb blasts resulting in 84 casualties	joint mock drills are carried out by Mumbai Police, Special
			and hundreds of injuries. Since then, BSE has	Commandos and SRPF along with BSE security guards.
			continuously been on heightened risk of another	Decoy attempts are carried out by Mumbai Police to check
			terror attack based on intelligence inputs.	alertness of BSE security guards.
8.	Investor Protection	Opportunity	We believe, investor education and awareness are	The grievances of investors against listed companies and	Positive
			the key to the wealth and financial wellbeing of the	BSE Trading Members are redressed by BSE. BSE also
			investors. Protecting the interest of the investors	assists in the arbitration process both, between Trading
			dealing in securities is one of the main objectives	Members inter-se and between Trading Members and
			of BSE. The capital market can grow only when	non - Trading Members. With a view to ensure speedy and
			investors find it safe for them to invest and they	effective resolution of claims, differences, and disputes
			are assured that the rules governing the market	between Trading Members inter-se and between Trading
			are fair and just to all the players.	Members and non - Trading Members, BSE has laid down
				a set of procedures for arbitration thereof. These procedures
				are duly embodied in the Rules, Byelaws and Regulations of
				BSE, which have been duly approved by the Government of
				India / Securities and Exchange Board of India (SEBI).

		S.	Material issue identified	Indicate	Rationale for identifying the risk/	In case of risk, approach to adapt or mitigate		Financial implications of
		No.				whether risk	opportunity			the risk or opportunity
					or opportunity				(Indicate positive or
						(R/O)				negative implications)
9.	Corporate		Social	Opportunity	BSE recognizes the importance of Corporate Social	-		Positive
			responsibility			Responsibility as a corner stone of its business
							philosophy. Through our unwavering commitment
							to CSR, we strive to make a meaningful impact on
							the society and the communities we operate in.
10.	Net worth Adequacy, Liquidity	Risk	Inadequate Net worth and Liquidity may pose	BSE has to satisfy the Minimum Net worth requirements at all	Negative
			and Credit Risk			Risk to continuity and survival of the organization.	times as mandated by the Securities Contracts (Regulation)
							Excessive Credit Risk may result in value erosion	(Stock Exchanges and Clearing Corporations) Regulations,
							of the Financial Assets of the Company.	2018. This ensures the minimum capital Adequacy.
								Additionally Investment book of BSE has well diversified
								highly rated good quality portfolio which avoids credit Risk
								and Liquidity Risks.
11.	Critical	Skill,	Resource	Risk	The HR function needs to provide timely resources	With BSE's strong empanelment of headhunting and	Negative
			Management and Succession		with the required skill sets as well as retain the	recruiting agencies and subscription to job portals, talent
			Planning				right talent. Failure to do so may cause productivity	acquisition process becomes objective and fast paced so
							issues and affect the Organizational performance.	as to cater emerging skill requirements for businesses.
							Robust Succession Planning strategy needs to	For entry level skills requirements, campus	hiring is
							done by collaborating with various business	schools.
							be in place to overcome the leadership vacuum	Apart from this BSE conducts various in house and external
							situations anytime in the organization.	trainingprogramsfortheskilldevelopmentofexistingworkforce.
105							There is succession policy in place which is approved by
						Nomination and Remuneration committee. The attrition
								level details are presented to NRC and Board every quarter.
								BSE's strong retention strategies help to retain the key
								managerial personnel & senior position employees.
12.	Market Resilience		Risk &	BSE stands to draw a larger pool of investors and	A resilient market diminishes the probability of abrupt	Positive & Negative
						Opportunity	traders, thereby augmenting trading volumes	market downturns or disturbances, mitigating the potential
							and transaction revenues. Confidence in the	for significant financial repercussions for both the exchange
							exchanges' integrity and transparency fosters	and its participants.
							increased market participation, driving revenue
							generation for the exchange.
ANNUAL REPORT
2023-2024