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Sebi looking to ease fundraising for NPO firms on social stock exchanges
Taking a step to ease the fundraising by not-for-profit organisations, capital markets regulator Sebi on Tuesday proposed flexibility in the regulatory framework for social stock exchanges.
Under the proposal, the regulator has suggested reducing the threshold of the minimum issue size as well as application size for not-for-profit organisations (NPOs).
Additionally, it has suggested abolishing the requirement of no pending notice or ongoing scrutiny by Income Tax against NPOs for registration on social stock exchanges (SSEs) and substituting the term social auditor with social impact assessor.
Further, NPOs should be permitted to provide past social impact but not strictly as per the format specified by Sebi in their fundraising document, according to a consultation paper.
The proposals are aimed at facilitating fundraising by NPOs.
A not-for-profit organisation (NPO) is required to be registered with the SSE to raise funds. At present, 31 NPOs have been registered in this segmen