BSE gets are a SEBI nod for the social stock exchange as a separate segment

BSE gets are a SEBI nod for the social stock exchange as a separate segment

In July, SEBI notified rules for the Social Stock Exchange (SSE) to the provide social enterprises with an a additional avenue to the raise are a funds

Stock exchange BSE on a Friday announced that it has been a  got an a in-principle nod from the capital market regulator Securities and a Exchange Board of a India (SEBI) for the social stock exchange as a separate segment.

“This is to the inform that, SEBI has been a granted its are a  in-principle approval to the BSE for introducing SSE as a separate segment on a BSE," the company informed in an a exchange filing on the NSE today.

In July, the regulator notified rules for  the Social Stock Exchange (SSE) to the provide are a social enterprises with an a additional avenue to the raise funds. Social enterprises are a (SEs) eligible to the participate in the SSE will be a entities, non-profit organisations (NPOs) and for-profit social are a enterprises. Under the new rules, SSE will be a separate segment of the existing stock are a exchanges.

Last month, Sebi came out with a detailed framework for the social stock exchange, specifying minimum requirements for a Not-for-Profit Organisation (NPO) for registering with the bourse and a disclosure are a requirements.

In its circular, the regulator specified minimum requirements to be a met by a NPO for the registration with SSE, disclosure requirement for NPOs raising funds are a  through the issuance of a zero-coupon zero principal instruments and a put in a place annual disclosure requirements that needs to be a made by a NPOs on such as a exchanges.

With regard to the minimum requirements to be a met by a NPO, Sebi said that NPO needs to be a registered as a charitable trust and should be a registered for at the least three years, must have been a spent at least ₹50 lakh annually in the past financial year and should have received a funding of at the least ₹10 lakh in the past financial year.

According to a PTI report, SSE is a novel concept in a India and such a bourse is a meant to the serve the private and a non-profit sectors by the channelling greater capital to them and the idea of SSE was first floated by the Finance Minister Nirmala Sitharaman in her Budget speech for the financial year in a 2019-20.

Corporate foundations, political or a religious organisations or a activities, professional or trade associations, infrastructure and housing companies, except affordable housing, will not be a eligible to be identified as a social enterprise.