The Securities and Exchange Board of India (SEBI) technical committee on social stock exchanges (SSEs) has proposed that both For-Profit Enterprise (FPE) and Not for Profit Organization (NPO) would be entitled to tap the SSE if they can demonstrate their primary targets are social purpose and influence. However, political, and religious organizations, trade organizations, and corporate foundations are barred from raising funds through SSEs.
According to the market regulator, companies listed on the SSE will be required to publish a social impact report every year that includes information such as "strategic intent and planning, impact scorecard, information about eradicating hunger, inequality, promoting gender equality through women's empowerment, and LGBTQIA+ communities. The panel has also suggested various ways of fundraising for NPOs and FPEs. It has advised non-profits to raise funds through "equity, zero-coupon zero principal loan, growth impact shares, social impact fund with 100% grants-in grants-out clause, and contributions from investors by mutual funds." and FPEs to raise funds through equity, debt, and growth impact bonds.
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