SEBI circular on Social Stock Exchange
In its latest circular on Social Stock Exchange, SEBI expands eligibility for Not-for-Profit Organizations (NPOs) to include charitable trusts and societies, mandates a 12-month valid registration, and requires detailed annual disclosures covering general, governance, and financial aspects.
Social enterprises and NPOs are now required to provide detailed annual disclosures covering general, governance, and financial aspects, including information on outreach, top programs, and related party transactions. All social enterprises raising funds through the SSE must submit an Annual Impact Reports, which must be independently assessed.
The amendments aim to tighten the framework, raising governance standards on the SSE. Expanded disclosure requirements and independent impact assessments promote greater transparency and accountability within the social impact sector. It brings more clarity and structure to the SSE framework, making it more accessible for qualified organizations.
