The Securities and Exchange Board of India on 13th October 2022, has notified the Composition and Terms of Reference for Social Stock Exchange Governing Council (“SGC”). As per Regulation 292D of the ICDR Regulations, every Social Stock Exchange shall constitute a Social Stock Exchange Governing Council to have an oversight on its functioning, with composition and terms of reference as specified by the Board.
The SGC shall comprise of individuals with relevant expertise who can contribute to the development of SSE. It shall have a balanced representation, drawing from various categories of stakeholders such as:-
- Philanthropic and social sectors including public / private sector donors,
- Non-profit organizations
- Information Repositories
- Social Impact Investors
- Social Audit Profession / self-regulatory organization for social auditors,
- Capacity Building Fund
- Stock Exchange.
The Board of the Stock Exchange shall prescribe the procedure, frequency, quorum etc for the meetings of SGC as well as guidelines for handling potential conflict of interest, if any. SGC shall meet as frequently as required with minimum of four meetings in a financial year.
The SGC is expected to provide oversight and guidance to facilitate the smooth functioning of the operations of the Social Stock Exchange, with regard to registration, fund raising and disclosures by Social Enterprises
The Stock Exchange shall constitute a Governing Council for the Social Stock Exchange prior to seeking final approval from SEBI for introduction of Social Stock Exchange as a separate segment.
