SEBI approves social stock exchange segment

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SEBI approves social stock exchange segment

The market regulator Sebi has approved the introduction of the Social Stock Exchange SSE as a separate segment on the exchange, and the BSE said on Friday it had received an in-principle approval from the market regulators.

In an exchange filing, BSE said that the SEBI has granted in-principle approval to BSE for introducing SSE as a separate segment on the BSE.

The SSE segment will give social enterprises an additional avenue of funding, as it will lead to the listing of non-for-profit organisations NPOs on the stock exchange.

On September 19th, Sebi had come out with a detailed framework for the social stock exchange, which specifies minimum requirements for a NPO for registering with the bourse and disclosure requirements.

In its circular, Sebi had specified disclosure requirements for NPOs raising funds through the issuance of zero-coupon zero principal instruments, and put in place annual disclosure requirements.

Sebi said in its September 19 circular that Listed NPOs will have to submit a statement of utilisation of funds to SSE, as mandated by Sebi's rules.

Social enterprises raising funds using SSE must disclose Annual Impact Report AIR within 90 days of the end of the financial year, capturing the qualitative and quantitative impact generated by the project or solution for which funding has been raised on SSE, and where applicable, the impact that has been generated by the project or solution.