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The Tax Publishers SEBI--Social Stock Exchange Listing of Social Stock Exchanges--Revised Norms CA. Deepak Harwani In the Present article the learned author discusses about the current regulatory position, gaps identified in those regulatory norms, recent amendments recommended by Social Stock Exchange Advisory Committee for Social stock exchanges along with the views as to how those recommendations will resolve the current gaps identified. 1. Introduction On January 20, 2025, the Securities and Exchange Board of India (SEBI) issued a Consultation Paper proposing a comprehensive review of the existing regulatory framework governing the Social Stock Exchange (SSE). This initiative has been undertaken pursuant to recommendations received from the Social Stock Exchange Advisory Committee (SSEAC). The primary objective of the Consultation Paper is to solicit public comments on various proposed measures intended to enhance the operational efficacy and impact of the SSE. The proposals under consideration are aimed at : (i) streamlining the procedural framework to facilitate easier access to capital for Social Enterprises, including both Not-for-Profit Organizations and For-Profit Social Enterprises; (ii) augmenting investor participation and confidence through improved governance and disclosure mechanisms; (iii) reinforcing transparency and accountability across entities seeking to raise funds via the SSE platform. Stakeholders, including regulated entities, investors, social enterprises, civil society organizations, and members of the public, are invited to furnish their comments, suggestions, or objections in relation to the proposals contained in the Consultation Paper. 2. Following are the Amendments recommended by Social Stock Exchange Advisory Committee (SSEAC) in SEBI (ICDR) and LODR Regulations (i) Expansion of the Definition and Scope of Not-for-Profit Organisations (NPOs) Current Regulatory Position Under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ('ICDR Regulations'), the term Not-for-Profit Organization is presently restricted to Charitable trusts registered under the Indian Trusts Act, 1882, Public trusts registered under relevant state-specific statutes, Societies registered under the Societies Registration Act, 1860 and Companies incorporated under section 8 of the Companies Act, 2013. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

SEBI--Social Stock Exchange

Listing of Social Stock Exchanges--Revised Norms

CA. Deepak Harwani

In the Present article the learned author discusses about the current regulatory position, gaps identified in those regulatory norms, recent amendments recommended by Social Stock Exchange Advisory Committee for Social stock exchanges along with the views as to how those recommendations will resolve the current gaps identified.

1. Introduction

On January 20, 2025, the Securities and Exchange Board of India (SEBI) issued a Consultation Paper proposing a comprehensive review of the existing regulatory framework governing the Social Stock Exchange (SSE). This initiative has been undertaken pursuant to recommendations received from the Social Stock Exchange Advisory Committee (SSEAC).

The primary objective of the Consultation Paper is to solicit public comments on various proposed measures intended to enhance the operational efficacy and impact of the SSE. The proposals under consideration are aimed at :

(i) streamlining the procedural framework to facilitate easier access to capital for Social Enterprises, including both Not-for-Profit Organizations and For-Profit Social Enterprises;

(ii) augmenting investor participation and confidence through improved governance and disclosure mechanisms;

(iii) reinforcing transparency and accountability across entities seeking to raise funds via the SSE platform.

Stakeholders, including regulated entities, investors, social enterprises, civil society organizations, and members of the public, are invited to furnish their comments, suggestions, or objections in relation to the proposals contained in the Consultation Paper.

2. Following are the Amendments recommended by Social Stock Exchange Advisory Committee (SSEAC) in SEBI (ICDR) and LODR Regulations

(i) Expansion of the Definition and Scope of Not-for-Profit Organisations (NPOs)

Current Regulatory Position

Under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ('ICDR Regulations'), the term Not-for-Profit Organization is presently restricted to Charitable trusts registered under the Indian Trusts Act, 1882, Public trusts registered under relevant state-specific statutes, Societies registered under the Societies Registration Act, 1860 and Companies incorporated under section 8 of the Companies Act, 2013.