TaxTMI 
TaxTMI 
TaxTMI 
Framework on Social Stock Exchange (“SSE”)
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.... A. 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 A NPO desirous of registration on SSE, in terms of Regulation 292F(1) of ICDR Regulations, shall fulfil the following criteria: Broad Parameter Indicator Details Legal Requirements Entity is registered as an NPO Registration certificate valid at least for next 12 months at the time of seeking registration with SSE Entities must be registered in India as one of the below: a. a charitable trust registered under the public trust statue of the relevant state; b. a charitable trust registered under the Societies Registration Act, 1860 c. a charitable trust registered under the Indian Trusts Act, 1882 d. a company incorporated under section 8 of the Companies Act, 2013 Ownership and control Governing document (MoA & AoA/ Trust Deed/ Bye-laws/ Constitution) Disclose if NPO is owned and/or controlled by government or private Exemption under Income Tax Act Registration Certificate under section 12A/12AA/12AB under Income Tax Act, 1961 Registration Certificate under section 12A/12AA/12AB....
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....raisal process etc. f. Operations The organisation has a physical existence, is operational and shares its address for visits. g. Finance Disclosure of financial statements for last three Financial Years in accordance with guidelines for NPOs issued by Institute of Chartered Accountants of India (ICAI). h. Compliance Organisation makes available, annual accounts duly audited for the latest three financial years and there are no material qualifications or material irregularities reported by its auditor. Compliances w.r.t. Income Tax, notices received etc. i. Credibility Documents such as Registration, Trust Deed/ MoA and AoA, Address Proof, IT PAN, 12A/12AA/12AB Certificate, FCRA certificate and returns, remuneration to governing members. j. Social Impact Details of past social impact in terms of parameters specified in Para D(5) of this circular. k. Risks Disclose (i) risks that the NPO sees to its work and how it proposes to mitigate these (ii) unintended consequences that the NPO sees from its work and how it proposes to mitigate these. C. Annual disclosure by NPOs on SS....
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.... (5) SSE may specify additional parameters that may be required to be disclosed by NPO on annual basis. D. 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 (1) All Social Enterprises (SEs) will have to provide duly audited Annual Impact Report (AIR) to SSE within 90 days from the end of Financial Year. (2) The AIR shall capture the qualitative and quantitative aspects of the social impact generated by the entity and where applicable, the impact that is generated by the project or solution for which funds have been raised on SSE. (3) In case an NPO is only registered without listing any security, the AIR must cover the NPO's significant activities, intervention, programs or projects during the year and the methodology for determination of significance must be explained. Additionally, if there is an activity, intervention, program or projects covered under a listed security, it will qualify as a significant activity, intervention, program or project. (4) For a Social Impact Fund where the underlying recipients of funds are SEs which hav....
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....ds in terms of 91F of the LODR Regulations Listed NPO shall submit statement of utilisation of funds to SSE, as mandated under Regulation 91F of the LODR Regulations, within 45 days from the end of quarter. 2. This circular is issued in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect immediately. 3. A copy of this circular is available on SEBI website at www.sebi.gov.in under the categories "Legal Framework/Circulars". Yours faithfully, Yogita Jadhav General Manager Corporation Finance Department +91 22 2644 9583 Email - [email protected] Annexure I: Guidance notes for listed/registered NPOs on disclosures of general, governance and financial aspects General disclosures 1. Name of the organization (legal and popular name): The reporting organization shall report on the registered name and also any popular names the organization is known by among stakeholders. 2. Location of headquarters and location of operations: Headquarter refers....
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....tal outreach (Direct, Indirect, Institutional) SDG goal or target Alignment with national/ state schemes or priority 1 2 8. Details of top 5 programs in disclosure period - List of Top 5 activities/intervention/programs/project (budget wise) Sl. No. SDG goal or target Geography Total program cost (INR) Expenditure in current year (INR) Cumulative expenditure (INR) Total outreach (Direct, Indirect, Institutional) Names of Donors or investors Alignment with national/state schemes or priority 1 2 Governance Disclosures 1. Ownership and legal form: The organization shall explain the nature of ownership and the legal form on the entit....
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.... linked payments. It can also include any termination payments and claw backs. It is also important to bring out how performance of the organization is linked to remuneration. 10. Stakeholder grievance, process of grievance redressal and number of grievance received and resolved: Apart from concerns related to ethics, the organization shall report on what is the organizations process to seek any stakeholder concerns or grievances. How many such concerns or grievances were received and how many of them were resolved. 11. Compliance management process and statement of compliance from senior decision maker: This disclosure requires the organizations to explain how the organization manages to monitor its compliance in respect of regulatory and legal requirements. There shall be a statement on the compliance status by the senior decision maker, who shall be the chair, CEO or equivalent senior position. 12. Organisation registration certificate and other licenses and certifications (12A, 80G, FCRA, GST, etc.). Financial Disclosures ICAI is in the process of publishing the uniform accounting and reporting framework for NGO. However, the following disclosures shall be mad....
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.... 4. What will be the outcomes of the solution/program? Coverage should include positive and potential unintended negative outcomes. Describe the Theory of change / logic model framework (defining input, output(s), outcome(s)) for the solution proposed. While identifying the targeted impact segment, both positive and potential unintended negative impacts need to be identified. Approach 1. What is the baseline status / situation analysis / context description at the start of the activity, intervention, program or project? The baseline measurement is done to establish the starting point in any activity, intervention, program or project. The measurements give the depth of the challenge and/or the spread of the challenge. The organization will establish the right kind of measurements keeping the end or what the organization or instrument wants to achieve since the baseline will be used to measure what actually changed due to the intervention. In absence of baseline study, a detailed situation analysis to be mentioned. 2. What has been the past performance trend? For the on-going activity, intervention, program or project explain the key past performance trends and for....
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....s for target segment(s) served: • Proportion of target segment(s) who have been reached in the reporting period • Proportion of target segment(s) who accepted the organization`s solution • What part of the planned activity, intervention, program or project have been accomplished in the reporting period • Cumulative reach (members of the target segment served since inception) • Other suitable metrics in relation to the solution, usually relate to people, institutions or activities (Ex: monthly active users of MAUs for an app/tech platform). These can be considered as needed, where the target segment is the specific geographic region. Depth - The depth of impact on the median individual (of the target segment(s)) Surveys (1% of the customers/recipients or at least 200 respondents per organization) asking respondents 'Has your quality of life changed', with response options being: Very much improved, slightly improved, no change, got slightly worse, got much worse. Alternatively, SE can compare itself to different 'case studies' of High - Medium - Low depth organizations. Inclusion - The SE must consider for ....