Stock exchange BSE on Friday announced that it has received in-principle approval from capital markets regulator Securities and Exchange Board of India (SEBI) for social stock exchange as a separate segment.
“It is informed that, SEBI has given its in-principle approval BSE To offer SSE as a separate segment on BSE,” the company informed in an exchange filing on NSE today.
In July, the regulator notified the rules social stock exchange (SSE) To provide additional opportunities to social enterprises to raise funds. The eligible social enterprise (SE) institutions, non-profit organizations (NPOs) and for-profit social enterprises would be eligible to participate in SSE. Under the new rules, the SSE will be a separate segment of the existing stock exchanges.
Last month, SEBI introduced a detailed framework for social stock exchanges, specifying minimum requirements for non-profit organizations (NPOs) to register with the exchange and fulfill disclosure requirements.
In its circular, the regulator has specified the minimum requirements to be met by NPOs for registration with SSEs, the requirement for NPOs to raise funds through issuance of zero-coupon zero principal instruments and the requirements to be undertaken by NPOs. Set annual disclosure requirements. on such exchanges.
With regard to the minimum requirements to be fulfilled by an NPO, SEBI stated that the NPO must be registered as a charitable trust and must have been registered for at least three years, must have incurred at least 50 lakhs annually in the previous financial year and should have received funding of at least 10 lakh in the last financial year.
according to a PTI The report, SSE is a novel concept in India and such a share is to serve the private and non-profit sectors to provide them more capital and the idea of SSE was first introduced by Finance Minister Nirmala Sitharaman in her budget speech for financials. was introduced in Year 2019-20.
Corporate foundations, political or religious organizations or activities, professional or trade associations, infrastructure and housing companies, except affordable housing, shall not be eligible to be recognized as social enterprises.
(with inputs from PTI)
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.