Connect with us

Business

Social stock market: Sebi proposes a framework for the social stock market

Published

on

 


New Delhi: Capital markets regulator Sebi released a detailed framework for the social stock exchange on Monday, specifying the minimum requirements for a non-profit organization (NPO) to register with the stock exchange and disclosure requirements. This came after the Securities and Exchange Board of India (Sebi) in July notified rules for the Social Stock Exchange (SSE) to provide social enterprises with an additional means of raising funds.

SSE is a new concept in India and such an exchange is intended to serve the private and non-profit sectors by channeling larger capital to them. The idea of ​​the SSE was first floated by Finance Minister Nirmala Sitharaman in her budget speech for the fiscal year 2019-20.

In its circular, the regulator specified the minimum requirements to be met by an NPO for registration with the SSE, the disclosure requirement for NPOs that raise funds through the issuance of zero principal zero coupon instruments and has implemented annual disclosure requirements that must be made by NPOs. on such exchanges.

Listed NPOs will be required to submit a statement of use of funds to SSE, as required by Sebi’s rules within 45 days of the end of the quarter.

In addition, Sebi required social enterprises raising funds using SSE to disclose the Annual Impact Report (AIR) within 90 days of the end of the fiscal year, capturing the qualitative and quantitative aspects of the social impact generated by the entity and, if applicable, the impact that is generated by the project or solution for which funds have been raised on SSE.

According to the rules, SSE will be a separate segment from the existing exchanges.

Social enterprises eligible to participate in the SSE will be entities – both NPOs and for-profit social enterprises – with social intent and impact as their primary objective.

Further, such intent should be demonstrated by its focus on eligible social goals for underserved or less privileged populations or regions.

Social enterprises will have to engage in one social activity among 16 major activities listed by the regulator. Eligible activities include the eradication of hunger, poverty, malnutrition and inequality; promote health care, support education, employability and livelihoods; empowerment of women and LGBTQIA+ communities for gender equality; and supporting social enterprise incubators.

Corporate foundations, political or religious organizations or activities, professional or business associations, infrastructure and housing companies, except affordable housing, will not qualify as a social enterprise.

Regarding the minimum requirements to be met by an NPO, Sebi said that the NPO must be registered as a charitable trust and must be registered for at least three years, must have spent at least Rs 50 lakh per year during of the past financial year and expected to have received funding of at least Rs 10 lakh in the past financial year.

Specifying the initial disclosure requirement for NPOs that raise funds through the issuance of zero coupon and zero principal instruments, Sebi said such entities must disclose their vision, disclose the target segment (those affected by the problem and how they are affected) and the approach to accomplish its planned activities; details of its governing body, composition, dates of board meetings held; and details of key management personnel.

In addition, NPOs must disclose financial statements for the past three years, details of past social impact and risks they see on their work and how they propose to mitigate them.

Regarding annual disclosure by NPOs on SSE that have raised funds through SSE or are registered with SSE, Sebi said that these NPOs will have to disclose the details of the top five donors or investors in terms of budget, scale of operations, including staff and volunteer strength, governance structure, financial statements, use of funds by program for the year and auditors report and details of auditors.

Sources

1/ https://Google.com/

2/ https://economictimes.indiatimes.com/markets/stocks/news/sebi-comes-out-with-framework-for-social-stock-exchange/articleshow/94310386.cms

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]