The Securities and Exchange Board of India on 19th September 2022, notified a detailed framework on Social Stock Exchange (SSE). A social enterprise may be eligible for on-boarding on SSE if it demonstrates that social intent and impact are its primary goals and it reports such impact. This is irrespective of the legal structure of the enterprise.
A not-for-profit organization (NPO), desirous of registration on SSE, shall fulfill the following criteria:
- Entity is registered as an NPO and it shall have the Registration certificate valid at least for next 12 months at the time of seeking registration with SSE
- The NPO shall disclose its ownership, whether is owned and/or controlled by government or private.
- NPO shall register with the income tax department and must have a valid IT PAN.
- NPO shall disclose details regarding Annual Spending in the past financial year, Receipts from Audited accounts/ Fund Flow Statement etc.
All Social Enterprises (SEs) will have to provide duly audited Annual Impact Report (AIR) to SSE within 90 days from the end of Financial Year. The AIR shall capture the qualitative and quantitative aspects of the social impact generated by the entity and where applicable, the impact that is generated by the project or solution for which funds have been raised on SSE
In case an NPO is only registered without listing any security, the AIR must cover the NPO’s significant activities, intervention, programs or projects during the year and the methodology for determination of significance must be explained. Additionally, if there is an activity, intervention, program or projects covered under a listed security, it will qualify as a significant activity, intervention, program or project.
