The Securities and Exchange Board of India on 5th May 2021 has invited comments from the public on the Report Submitted by the Technical Group on Social Stock Exchange which shall be sent to Smt. Yogita Jadhav, GM at (yogitag@sebi.gov.in), Shri Abhishek Rozatkar (abhishekr@sebi.gov.in) and Shri Rajesh Kumar Meena (rajeshm@sebi.gov.in) before 20th June 2021.
The Technical Group has suggested a detailed framework for onboarding social enterprises and non-profit organisations on the proposed social stock exchange and has recommended that corporate foundations, political and religious organisations should be made ineligible to raise funds using the SSE mechanism.
In respect of Social Auditors, TG recommends that to begin with only reputed firms/institutions having relevant expertise shall be allowed to carry out social audits. Such institutions will employ social auditors who have qualified certification course conducted by NISM.
Further In order to make Social Venture Funds (SVF-a type of Cat-I AIF) as an attractive means for investment in NPOs, the TG has recommended that a new form of SVF may be set up allowing 100% grants-in, grants-out. TG has also recommended that reference to “muted” returns in the AIF Regulations may be removed and the nomenclature of Social Venture Funds may be changed to ‘Social Impact Funds.
