SEBI Update - Framework on Social Stock Exchange (“SSE”)

Framework on Social Stock Exchange (“SSE”)

In Paragraph 1, sub-paragraph A, titled “Minimum requirement to be met by a Not for Profit Organization (NPO) for registration with SSE in terms of Regulation 292F of the ICDR Regulations”, the following requirement under the Board Parameter in the table given below shall read as under:

Broad Parameter Indicator Details Exemption under Income-tax Act, 1961: Registration Certificate under section 12A/ 12AA/ 12AB/ 10(23C)/ 10(46) under Income tax Act, 1961 a. Registration Certificate under section 12A/ 12AA/ 12AB/ 10(23C)/ 10(46) to be valid for at least the next 12 months. b. Details regarding pending notices or scrutiny cases from all regulatory and statutory authority shall be disclosed at the time of making the application for the registration c. Fines or penalties if imposed shall be disclosed as paid or appealed within 7 days. The Stock Exchanges shall have the right to refuse registration of those applicants, if the notices/ scrutiny cases are grave and debilitating enough to endanger the registration of the NPO under the Income-tax Act, 1961 or other relevant laws Deduction under Income-tax Act, 1961 Valid 80G registration under Income Tax Act, 1961 for entities registered under section 12A/ 12AA/ 12AB of the Income-tax Act, 1961 Entity to ensure disclosure whether tax deduction is available or not to investors. Paragraph Framework on Social Stock Exchange (“SSE”) 19 th Sept 2022 Framework on Social Stock Exchange (“SSE”) 28 th Dec 2023 In Paragraph 1, in sub-paragraph B 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 Minimum Initial Disclosure Requirement for NPOs raising funds through the issuance of Zero Coupon Zero Principal Instruments in terms of Regulation 292K of the ICDR Regulations Paragraph 1, after subparagraph A and before sub-paragraph B, the following new sub-paragraphs AA - Procedure for public issuance of Zero Coupon Zero Principal Instruments by a not for profit organization (1) The not for profit organization shall, through the lead manager(s), file the draft fundraising document with the Social Stock Exchange where it is registered along with the fees as specified by the Social Stock Exchange and an application seeking in-principle approval for listing of its Zero Coupon Zero Principal Instruments on the Social Stock Exchange: Provided th