Saturday, March 2, 2024
Google search engine
HomeBusinessBSE gets SEBI's approval to set up a separate social stock exchange

BSE gets SEBI’s approval to set up a separate social stock exchange

[ad_1]


on Friday received approval from the Securities Exchange Board of India (SEBI) to set up a social (SSE) as a separate segment of the .


“This is to inform that, has granted its in-principle approval to for introducing SSE as a separate Segment on BSE,” the notification by BSE read.


In July, notified rules for Social (SSE) to provide with an additional avenue to raise funds.


In its circular, the regulator had specified minimum requirements to be met by a non-profit organisation (NPO) for registration with SSE, disclosure requirements for NPOs raising funds through the issuance of zero-coupon zero principal instruments and put in place annual disclosure requirements that need to be made by NPOs on such exchanges.


The listed NPO will have to submit a statement of the utilisation of funds to SSE, as mandated under Sebi’s rules, within 45 days from the end of the quarter.


Also, has asked raising funds using SSE to disclose the Annual Impact Report (AIR) within 90 days from the end of the financial year, capturing the qualitative and quantitative aspects of the social impact generated by the entity and, where applicable. This impact is generated by the project or solution for which funds have been raised on SSE.


eligible to participate in the SSE will be NPOs and for-profit social enterprises having social intent and impact as their primary goal.


Also, such an intent should be demonstrated through its focus on eligible social objectives for the underserved or less privileged populations or regions.


The social enterprises will have to engage in a social activity out of 16 broad activities listed by the regulator. The eligible activities include eradicating hunger, poverty, malnutrition and inequality; promoting healthcare, supporting education, employability and livelihoods; gender equality empowerment of women and LGBTQIA+ communities; and supporting social enterprise incubators.


Corporate foundations, political or religious organisations or activities, professional or trade associations, and infrastructure and housing companies, except affordable housing, will not be eligible to be identified as a social enterprise.


In addition, NPOs need to disclose financial statements for the last three financial years, details of past social impact and risks they see to their work and how it proposes to mitigate these.


In respect of annual disclosure by NPOs on SSE which have either raised funds through SSE or are registered with SSE, Sebi said that such NPOs would have to disclose details of the top five donors or investors in terms of budget, the scale of operations, including employee and volunteer strength, governance structure, financial statement, programme-wise fund utilisation for the year and auditors report and auditor details.

[ad_2]

Source link

RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments