India's Social Stock Exchange (SSE) Launches New Framework for Social Enterprises and Impact Investing India's Social Stock Exchange (SSE) is a groundbreaking initiative designed to connect purpose-driven organizations with mission-aligned capital. Regulated by the Securities and Exchange Board of India (SEBI) and operating on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), the SSE provides a transparent, exchange-regulated platform for Not-for-Profit Organizations (NPOs) and For-Profit Social Enterprises (FPEs) to raise funds. This framework introduces the rigor of capital markets to the social sector, enabling entities with measurable social impact to access capital at scale. The SSE recognizes two categories of social enterprises: NPOs, including charitable trusts, societies registered under the Societies Registration Act 1860, and Section 8 companies; and FPEs, which are profit-oriented entities. To qualify, all entities must meet three criteria under Regulation 292E(2) of the ICDR Regulations. These include engaging in eligible activities, targeting underserved populations, and ensuring that at least 67% of their 3-year average revenue, expenditure, or beneficiary base relates to these activities. Excluded from eligibility are corporate foundations, political or religious organizations, professional associations, and infrastructure/housing companies (except affordable housing). Registration on the SSE is mandatory for NPOs seeking to raise funds. SEBI’s 2022 circular outlines specific criteria for NPO registration, including a minimum operational age of three years, valid tax registrations (Section 12A/12AA/12AB), 80G certification, annual spending of at least INR 50 lakhs, and INR 10 lakhs in funds received the previous year.#national_stock_exchange #bombay_stock_exchange #sebi #social_stock_exchange #ngo_darpan
