On 25 July 2022, the Securities Exchange Board of India (SEBI) incorporated new chapters relating to the Social Stock Exchange (SSE) by amending the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) and SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations).

New Development
On 19 September 2022, SEBI vide a circular No. SEBI/HO/CFD/PoD-1/P/CIR/2022/120 (the Framework), issued a detailed framework prescribing the minimum requirements to be followed by an Not for Profit Organisation (NPO) that desires to be registered/listed on an SSE. The main themes of the Framework are depicted below:

  • Registration of a Not for Profit Organisation (NPO)
  • Disclosure to be provided by NPOs for raising funds through the issuance of Zero Coupon Zero Principal (ZCZP) Instruments
  • Annual disclosures to be provided by an NPOs 
  • Disclosures forming part of the Annual Impact Report (AIR) submitted by Social Enterprises (SEs). 
  • The circular also prescribes the time limit for submission of statement of utilisation of funds by an NPO.

In this issue of the First Notes, we aim to provide an overview of the SSE framework issued by SEBI.

To access our the earlier edition of our First Notes dated 12 September 2022 on Social Audit Standards – Exposure Draft, please click here

To access the text of the SEBI notifications: , please click on the following: 

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