The Securities and Exchange Board of India (SEBI) has introduced a proposal to reduce the size requirements for issuances and applications on social stock exchanges. Furthermore, as of August 29th 2023, in Mumbai – SEBI no longer mandates the need for an 80G certificate and they are planning to replace the role of a social auditor with that of a social impact assessor. This development comes from a SEBI committee as reported by BL Mumbai Bureau.SEBI Gives Final Nod For Social Stock Exchange

A committee within the Securities and Exchange Board of India have proposed significant changes related to not-for-profit organizations issuing Zero Coupon Zero Principle Instruments on social stock exchanges (SSE). These proposals, dated August 29th 2023, aim to lower the minimum issue size threshold for NPOs on SSE from ₹1 crore to ₹50 lakh. Additionally they suggest that reducing the minimum application size from ₹2 lakh to ₹10,000.

One notable change is the removal of the requirement for a valid 80G certificate for NPOs seeking registration with SSE. Instead, NPOs with ongoing scrutiny by the income tax department may be allowed on SSE ; provided they disclose pending notices and fines during the application process. SSEs will have the discretion to refuse registration for serious violations.

Furthermore, the committee recommends changing the term “social auditor” to “social impact assessor.” SEBI has requested feedback on these proposals until September 19th 2023. These developments were reported by BL Mumbai Bureau.

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