A Circular on “Framework on Social Stock Exchange”. SEBI vide notification dated July 25, 2022, amended 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”) in order to provide a broad framework for Social Stock Exchange. In terms of the said amendment, a detailed framework on SSE has been specified within this Circular. This Circular specifies the following:
i) Minimum requirements to be met by a Not for Profit Organization(NPO) for registration with SSE in terms of Regulation 292F of the ICDR Regulations;
ii) Minimum Initial Disclosure Requirement for NPOs raising funds through the issuance of Zero Coupon Zero Principal Instruments in terms of Regulation 292K(1) of the ICDR Regulations;
iii) Annual disclosure by NPOs on SSE which have either raised funds through SSE or are registered with SSE in terms of Regulation 91C of the LODR Regulations;
iv) Disclosure of Annual Impact Report by all Social Enterprises which have registered or raised funds using SSE in terms of Regulation 91E of the LODR Regulations;
v) Statement of utilisation of funds in terms of 91F of the LODR Regulations.
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